Central banks continue to hold sway in market sentiment. This time it was Chinese Premier Wen Jiabao who declared that monetary policy has room for new stimulus (a government official said this, not the central bank, but in China it is practically the same thing). This pledge of support more than compensated for another 'bad' news report of a sharp reduction in foreign investment in China. However, this reduction, rather than reflecting a lack of confidence in the prospects of the Chinese economy, refers to the low demand in the rest of the world, which suggests postponing further increases in production capacity.
MSCI Asia Pacific regional index is up 0,4%, with an increase above 1% in Tokyo, supported by the weakness of the yen. Another factor lies in the positive US data (industrial production and retail sales) released in the last two days, in addition to the equally positive ones (building permits and new construction sites) expected for today. In South Korea, the unemployment rate has fallen.
In the currency field, the euro is stable, above 1,23. Oil remains high, above 94 dollars a barrel.
