The combination of good news on US job creation and a revision of Japanese GDP has given Asian markets a breather, although it is now too late to avoid this week marking a break in the long chain of positive weeks for the regional index. The MSCI indicator is up around 1% and, in terms of currencies, the euro strengthens following optimism about the outcome of the Greek debt restructuring (data will be released today).
The ADP estimate on job creation in the United States is 216 new 'jobs': the official data will be communicated tomorrow, but a still low level of new unemployment benefits is expected today. Meanwhile, the second estimate of Japanese GDP for the last quarter reduced the fall, from an annualized rate of -2.6% to -0.7%. Domestic demand in Japan is showing signs of holding up: the current deficit with foreign countries has reached its highest level, at -5,4 billion dollars, since 1985 (the trade deficit is much larger, given that Japan has a surplus in the invisibles, with the proceeds of its immense foreign exchange reserves).
China has entered into agreements with its BRICS partners (Russia, India, Brazil and South Africa) to mutually grant loans in their respective currencies: another step towards the internationalization of the yuan.
http://www.bloomberg.com/news/2012-03-08/asia-stocks-gain-on-japan-gdp-data-greek-debt-swap-while-yen-kiwi-weaken.html
