Paradoxically, the bad news of the day – Japan's GDP unexpectedly contracted, albeit by only 0,1% – boosted the Tokyo stock market, given that this weakness raises the probability of adopting the ultra-expansive experiment adopted ( indeed, adopting) by the government of Shinzo Abe. Even the prudence shown by the Bank of Japan in today's meeting counted for little: the governor and two of his deputies expire in just over a month and the probable replacements are all on the side of the prime minister.
The Nikkei rose 0,7% and the MSCI Asia Pacific regional index, in Hong Kong's early afternoon, rose 0,4%. The single European currency is stable, at 1,345 against the dollar, and the yen cautiously resumed its attack at 94. Gold is confirmed as weak, and remains below the 1650 $/ounce level. One is tempted to say that when the economy improves gold gets worse, because it feeds on crises, but that too is not true. Gold price wanderings have inscrutable trails, making it one of the most volatile assets in a portfolio.
