Asia rises with Japan, the yen over 105 and oil over 100 dollars
It has been since 1972 that the Japanese stock exchange has not recorded a gain as substantial as the one with which it is preparing to close 2013 – around 50% depending on the index chosen – and the primum movens is undoubtedly the yen, which has momentum surpassed 105 against the dollar. But the rest of the Asian markets are also performing positively, and the MSCI Asia Pacific regional index recorded +0,2% in the early afternoon (the tenth consecutive profit).
The weak currency/strong stock market pattern does not apply only to Japan: also for Australia the slide of the Australian dollar (the strongest annual fall since 2008) has been accompanied by a stock market optimism, which is even easier to explain: the bulk of foreign exchange earnings for Australian industry comes from mining companies and commodity prices, traded in US dollars, translate into higher earnings when calculated in Australian dollars.
WTI oil has reached three figures ($100,2/b – Brent 112,4) and gold, at $1209/troy ounce, is going to record its biggest fall in many years. The euro, whose uncomfortable strength (it is the currency that has gained the most among those of the advanced countries) disturbs the sleep of European producers, registers 137,4 against the dollar.
