Monday, May 6, 2013

Malaysian Election,US Jobs Lift Asian Markets

Asian markets were up in early Monday trading on optimism over Malaysian election results and the apparent US recovery,with the MSCI Asia Pacific index rising 0.24%.The encouraging employment report on Friday reinforces the idea that the US economy is going along at a decent clip,said Binay Chandgothia, a portfolio manager at Principal Global Investors.
By and large,we expect the US economy will grow in the second half.Natural gas is cheaper and corporates are spending on buybacks and dividend increases.The US energy markets long term do look to be positive.
People have been taking money out of emerging Asia and putting into the US and Japan.Over the next three months,China could provide growth as they are letting their economy take its own course.
The Kuala Lumpur Composite Index soared 3.0% along with the ringgit,the Malaysian currency,as the government of Prime Minister Najib Razak was re-elected,albeit by a smaller majority this time.Opposition leader Anwar Ibrahim bitterly criticised the ruling party for rigging the election by busing foreign voters in to slant the results,as well as playing the racist card against the country's Chinese minority.
India's Nifty Fifty futures index rose,indicating that a three week rally would be extended.
The Reserve Bank of India is restricting the purchase of gold on consignment by banks.It is to be allowed only for jewelry exporters with a genuine need,in order to bring down the current accounts deficit.The RBI had previously halted banks from lending for the purchase of gold in any form.
India is the world's largest gold consumer.Gold has been scarce there recently on strong demand.The Akshaya Tritiya festival on May 13 is the traditional day for buying precious metals in India.
Japanese stock markets are closed Monday for Children's Day.

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