Every major Asian stock market advanced on Thursday, following the strong positive momentum seen during the U.S. trading hours. The strongest gains were seen in the Hong Kong’s Hang Seng index, which advanced 1.90%, after Datang International Power Generation reported better than expected results.
Helped by the strong gains seen during the last few weeks, the MSCI Asia Pacific index, which tracks the performance of the most developed 14 countries in the Asia Pacific region, reached a five-month high. At the same time, the Japanese index Nikkei is trading at the highest value it has touched over the previous 10 months, despite another round of weak macroeconomic data.
During the Asian session, a report showed that the Japanese unemployment rate reached 5.4% in June, the highest rate seen over the last six years. In Japan as well, the CPI report showed that prices declined 1.7% in June from one year earlier, the strongest pace ever recorded. For years, the Japanese central bank has tried to fight deflation, but until now, it has never really succeeded. Nowadays, the BoJ infuses massive amounts of liquidity into the inter-banking system, but still has had little effect on the real economy. Some economists argue that the Japanese economy had has run into a liquidity trap, since the economy cannot absorb any more liquidity.
Overnight, the Japanese Nikkei added 139.69 points (1.37%) to 10,304.90. The Australian S&P/Asx advanced 46.70 points (1.11%) to 4,237.10
Crude oil for August delivery was recently trading at $67.40 per barrel, up by $0.40.
Gold for August delivery was recently trading higher by $2.40 to $939.70.
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(from forexpros.com News)
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