For the 11th day in a row, the MSCI Asia Pacific index advanced (+0,4%), and is now around 11% higher than at the beginning of the year. There are no signs of overvaluation, however, as the P/E ratio stands at 14, close to the historical average. The most dynamic stock market was that of Tokyo, as the probable victory of the Liberal Democratic Party approaches, with Sunday's elections, whose leader, Shinzo Abe, wants a more expansionary monetary policy. Almost anticipating those wishes, the Bank of Japan is pioneering new ways to channel the liquidity created with virtually unlimited lending programs into corporate credit. Meanwhile, as was to be expected, the yen weakened to 83,5, to the relief of Japanese exporters. However, we are still a long way from the 100 Y/$ quota that the industrialists (just cite the utterances of the head of Nissan, Charlos Ghosn) consider as a 'neutral exchange rate'.
If the yen weakened, the euro strengthened, just below the 1,31 level. Gold fell sharply, for reasons, as usual, inscrutable.
