With Japanese markets still closed, the MSCI Asia Pacific ex-Japan Index retreated -0.5% in the early afternoon. The day started out positive but turned into a 'minus' sign as both PMIs for China's manufacturing sector fell, although they remained above the 50 threshold that separates advances from retreats. The performance of the markets was marked by a heavy fall (-2,5%) in the Thai stock market, following the worsening of internal turmoil over the forthcoming elections.
The setback in Asia, if it had proximate causes, is above all due to remote causes, ie profit taking after a generally positive month.
In the currency field, the yen remains comfortably above 105 and the euro is still strong, at 1,376. WTI oil, which in recent days had touched 100, this morning reached 98,8 $/b. Gold attempts a rebound, and is at 1226 $/ounce.
