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«AgroInvest» — News — Will Asian stocks be the first ones to indicate recovery?

Will Asian stocks be the first ones to indicate recovery?

2011-08-15 11:22:47

This is the question that is of the highest interest of the majority of the investors this Monday, and the same question is important for us as we have seen a 2% increase of UAIndex on Friday. Asian stocks have shown increase in their value as of August 15 trading session. The main factors shown to signal towards the increase are increase in U.S. retail sales over the last four months as well as the second-quarter Japan’s GDP release which have beat predictions of analysts.

The MSCI Asia Pacific Index rose 1.7 percent to 124.04 as of 3:57 p.m. in Tokyo. Seven stocks advanced for each one that declined, and nine out of 10 industry groups tracked by the index climbed. The gauge completed its third straight weekly loss last week after Standard & Poor’s cut its rating on U.S. credit and concern grew that Europe’s debt crisis may spread. Ten-day historical volatility on the MSCI index climbed last week to the highest level since March. Japan’s Nikkei 225 Stock Average climbed 1.4 percent after the Cabinet office reported gross domestic product shrank at an annualized 1.3 percent rate in the three months ended June 30 compared to the predicted negative 2 percent.

The growth is seen in in various markets with Dow Jones also showing positive performance on Friday, August 12th. Despite positive changes, volatility in the markets remains and it is still early to even mention recovery, hence investors are still very cautious about making any changes to their portfolios.

UAIndex