Economies around the world are showing signs of improvement with Asian stocks rising for a second day and the dollar trading near a three-month high against the euro, reports Bloomberg.
According to Bloomberg, the MSCI Asia Pacific excluding Japan Index of equities climbed 0.3% as of 1:05 p.m. in Tokyo, where markets are closed for a national holiday. The dollar was at $1.4253 per euro versus yesterday’s close of $1.4249 in New York.
The MSCI Asia Pacific ex-Japan index has risen 61% this year, its steepest annual increase since 1993, says Bloomberg.
“The recent data indicate the global economy is recovering faster than originally expected,” Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management in Sydney, told Bloomberg. “It’s too early to say whether the recovery is self- sustaining, but we should know towards the end of first quarter 2010.”
Confidence in a recovery also buoyed emerging-market bonds. Citing JPMorgan & Chase Co.’s EMBI+ Index, Bloomberg says the so-called yield spread on developing-nation debt fell five basis points to 2.88 percentage points, the lowest level since August 2008.
Bond risk fell in Australia and in Asia outside Japan, as measured by credit-default swaps. The Markit iTraxx Asia ex- Japan investment grade index fell 1 basis point to 96 in Hong Kong, says Bloomberg, citing BNP Paribas prices.