Of the 10 sectors that make up the Asian equity index (MSCI Asia Pacific), the only one that has risen is that of energy producers. And this recovery served to limit the losses of the index, which was -0,3% in the early afternoon in the Far East. The situation in Iraq has pushed the price of oil up to 107 $/b (WTI – Brent is at 113,2). The post-record correction – in America, Asia and Europe – is complicated by the Iraqi crisis, but the underlying factors are still supporting the market.
The Nikkei climbed 0,3% despite a strong yen, just below 102 against the dollar. The Chinese currency also strengthened, to 6,20 against the dollar, a clear appreciation compared to the recent 6,27 (the most depreciated level in the last 52 weeks). The Chinese stock market turned positive, after the figure on business loans, which increased more than expected. Monetary authorities are running out of credit fuel to prop up the economy, and the recent reduction in reserve requirements should help further.
The euro is stable at 1,356, while gold, fueled by geopolitical crises, has risen to 1272 $/ounce.
