Asian stock markets rallied on the wave of optimism created around signs of growth in the main economies. On the commodity front, palladium is down from its 33-month high. On the currency front, the Thai baht advanced, recovering some of the ground lost due to the military coup that took place in the Asian country.
The MSCI Asia Pacific index was up 0,5% by 11:35am in Tokyo, taking the week's gains to 0,9%. The euro was trading at a loss for the third week in a row, while the baht strengthened by 0,3 percent. Palladium slipped for the first time in six days, posting a 0,5 percent contraction. Asian credit risk fell for the third consecutive day.
The positive US new home sales reading galvanized markets after China posted a better-than-expected manufacturing reading yesterday. The Thai military staged its 16th coup in XNUMX years. In Ukraine, XNUMX soldiers were killed in an attack by pro-Russia rebels ahead of the weekend's presidential elections.
“Most investors see the US as the global growth engine of 2014,” comments Chris Weston, chief market strategist at IG Markets in Melbourne. “The stock market will continue to be the place to do business in the near term.”
In the morning, the MSCI Asia Pacific index was on its way to ending its second week of gains, the longest period of gains since March. The Topix was up 1,1%, and Australia's S&P/ASX 200 was up 0,4%, marking the third week of growth.
