Asian stocks register some rebound; Australian unemployment drops to 4.9%
City Index May 10, 2012 4:53 PM
<p>Asian stocks were higher, contrary to morning indicators and offshore leads. The MSCI Asia Pacific index was flat but markets in Australia, Japan and China […]</p>
Asian stocks were higher, contrary to morning indicators and offshore leads.
The MSCI Asia Pacific index was flat but markets in Australia, Japan and China were higher. The Hang Seng was the exception, falling by around 1.2% in early afternoon trading.
The Australian dollar bounced after domestic unemployment fell unexpectedly to 4.9%. The data was a huge boost for the Gillard government which only released its budget two nights ago, indicating the desire to reach a surplus in 2012-13.
The Australian dollar was last trading at 1.0108 against the US dollar while the Euro was steady at 1.2951 and the dollar yen pair was slightly higher 79.68.
Gold continues to trade below US$1600/oz while copper looks like setting modest gains tonight, last settling at around US$3.69/lb.
In other regional economic news, China’s exports rose 4.9% in April from a year earlier, compared with growth of 8.5% as expected by market consensus estimates. The composition of the numbers was disappointing.
Import growth of 0.3% trailed forecasts for a 10.9% gain. Still, despite the poor composition, the trade surplus was $18.4 billion, almost double estimates of $9.9 billion.
Elsewhere, Indonesia’s central bank held its benchmark rate at 5.75% as expected, saying inflation pressures going forward are so far under control. The central bank also said it sees the local currency weakening in response to global growth winding down. So far, inflation is within its 3.5-5.5% target range for this year.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.