Market Report - Asia Rallies

And in our market report, Asia markets hit an 11-week high on hopes the U.S. economic downturn may be easing. Asia markets got a lift from unexpectedly strong U.S. data overnight fueling hopes the the worst of the global recession may be over. Japan's Nikkei ended on a fresh 2 1/2 month high but Newedgegroup's senior strategist Kirby Daley said Asia's rally was likely to be short-lived. "If you look at the economic numbers underlining the economies we are seeing a steep drop off - an unbelievably steep drop off in exports. Exports are what drive the Asian economies that is what will drive the earnings for the companies whose stock prices are now rallying. Stocks were beaten down for so long that investors think maybe all the bad news was in and we get the self-fulfilling prophesy of a bear market rally. Everyone expected a bear market rally, here we have it.” Honda is delaying the start of a new factory in Japan and Toyota sales set to be flat if not worse than last month's weak figures. The world's biggest automaker said it had no idea when car sales would bottom out, but hoped governments around the world would offer incentives to jump-start demand. Nevertheless exporters such as Sony were among the top performers and Japanese PC maker Elpida soared after it said it would issue shares in subsidiaries to shore up its balance sheet.

In banking, Mitsubishi UFJ, Japan's biggest lender, and Morgan Stanley will merge their Japanese brokerage units to chase industry leaders Nomura holdings. In Hong Kong, China's top bank ICBC hit an 11-week high after the firm posted earnings that matched expectations and Goldman Sachs agreed not to sell 80 percent of its near five billion dollar stake before April next year.

Meanwhile as a European backlash grows against the Obama Administration's economic revival strategy, China's finance minister called for greater international monetary coordination and more global stimulus.

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[bnbalenda]

Nice video and this man is right.