June 19 – last Thursday – the MSCI Asia Pacific stock index it had reached its highest level in six years, but has retreated in recent sessions, despite the good news on the Chinese economy. The proximate cause of the weakness lies in concerns about heightened tensions in the Middle East following the Syrian bombing of Iraqi targets. The fears, of course, are centered on an increase in the price of oil, which however has remained relatively calm so far: today it stands at 106.7 $/b (WTI – Brent is at 114,3).
The regional index is shedding 0,3% in early Japanese afternoon. Tokyo drops by 0,6% with the yen at 1,92 against the dollar. Prime Minister Shinzo Abe said deflation in Japan is over. The gloomy mood in Asia certainly wasn't helped by last night's negative close on Wall Street, despite good news on consumer confidence (the Conference Board Index rose 3 points) and new home sales.
The euro is stable, at 136,1 against the dollar, while gold remains high, at 1312,5 $/ounce.
