Asian markets recover some ground

<p>Asian stocks were higher in early afternoon trading with the MSCI Asia Pacific Index in positive territory, although ever slightly. The index was 0.3% higher […]</p>

Asian stocks were higher in early afternoon trading with the MSCI Asia Pacific Index in positive territory, although ever slightly. The index was 0.3% higher when trading commenced in Tokyo.

In Australia, the S&P/ASX200 was trading 0.8% higher in late afternoon trading, with industrial companies and listed real estate trusts leading the way. Futures on the S&P500 were last indicating a flat open when trading commences tonight Asian time.

In corporate news, China Petrochemical – the region’s largest refiner – has announced a deal worth $3.54bn to acquire a 30% stake in Galpa Engergia’s Brazilian business, the largest China Petrochemical acquisition this year.

The acquirer will subscribe to new shares issued by Galpa and assume some debt in the deal, giving it access to four offshore blocks in Brazil’s Santos Basin. These include the Lula block which is reported to be the largest crude discovery in the Americas since the discovery of Mexico’s Cantarell field in the late 1970s.

All eyes are on tonight’s trading session in Europe and the US with very little unnecessary positions being held by traders going into the weekend.

The EUR/USD is finding some comfort above 1.36 level, but the full extent of sovereign debt issues are not completely behind us. This will make for choppier trading next week.

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