Brazil, Thailand, partly China and now also India. The list of countries that have loosened monetary policy is getting longer. The last is India where for the first time in three years the central bank has reduced the compulsory reserve ratios, also encouraged by a decrease in inflationary pressures. So it's not just because of the good news about job creation in America that markets have soared. The MSCI regional index is marking another increase, around 0,7%, starting well a week that could be the eighth of continued progress. And emerging markets generally continue to post good fundamentals and relatively low p/e ratios (around 10).
The balance of risks is changing. Until recently there were fears for America of a relapse into recession. Now, however, we are wondering about the strength of the recovery. Meanwhile, the euro has weakened, while the ultimatum looms, which should expire today, on an agreement for the restructuring of the Greek debt and the fate of the tranche of official aid remains in the balance.
http://www.bloomberg.com/news/2012-02-06/asian-stocks-climb-on-u-s-jobs-growth-euro-drops-on-greek-debt-concern.html
