Asia Investment Views 11 Nov

European stocks dropped overnight. The yield for Ireland increased still, with 10-year yield rose to 8.636%, after the London Clearing House LCH.Clearnet required traders to increase their deposit to 15% for Irish bonds positions. Stocks were taking a hit. Euro has dropped to around US$1.368 in the European afternoon, though regain some strengthen now.

US market was up despite early losses. The market was presumably affected by the tightening in China, which yesterday announced increasing the reserve requirement ratio. Though Cisco (CSCO.O) forecasted less-than-expected profit and sales, sending the US futures down after the market.

As of now, the Japan market opened higher in early morning as dollar strength means Japanese Yen weakened. Dollar Index (DXY) strengthened.

Hong Kong/China equities preview

Hong Kong stocks traded in New York ADR closed mostly higher. Though the strength of the US dollar and the concerns on Europe may weigh on stocks. Today we will also get the inflation number from China. Given the surprise rise the reserve requirement ratio yesterday, we might probably get a number higher than consensus estimates of 4%. This will be a drag on stocks, particularly the China stocks.

Today the G20 summit starts in Seoul, South Korea. Currency issues will be the focus, but I am not particularly hopeful on reaching any deals.

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.