The Asian regional index (ex-Japan) is now at its highest level in 16 months (August 2011) and the boost came from today's Chinese data and Friday's US data. The US labor market is still improving, while industrial production data in China, as well as Chinese retail sales, were better than expected. The Shanghai index improved, also receiving the disappointing data on exports, where the increase in November - year on year - was much lower than expected (a pity that Chinese statistics do not yet allow for seasonally adjusted estimates).
The Japanese GDP is confirmed to be decreasing, and the economy, with two negative quarters, is technically in recession. The position of Shinzo Abe, the probable winner of next Sunday's elections, in favor of more drastic and more expansive monetary measures than what has been done so far, is strengthened. Gold remains just above 1700, while oil is still weak, at prices of $86/barrel.
The euro is at Friday's levels, and is being held down by the political crisis in Italy. When the markets open today, the spread will be affected, but securing the Italian public finances should act as a barrier to the deterioration.
