Asian Stocks, Dollar Advance as Economies Show Signs of Improvement

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.
 

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern