The Asian markets are under sheer control of bulls as the Chinese Central Bank announced stimulus plan where the government would be floating nearly $24 billion worth of bonds in 2014 in order to fund its railway projects for under-developed areas of the country.
Railway / Construction Shares Up
Talking about railway, the shares of China Railway group limited soared by 5.9%, while the a massive rally of 7.2% gain was witnessed in the China Railway construction corporation as the investors are taking the government’s initiative as a positive sign for both these companies.
The stocks are up and soaring as the bulls continued to march on for the seventh consecutive trading day, where the Japanese Yen is at its 2-months low level that caused the major currencies to gain massively against the Yen. The Topix index of Japan managed to gain around 0.7% today in the Asian session where the MSCI Asia Pacific index jumped with 0.2% so far, where further potential is there for the market to go up.
According to a currency analyst of Japan, the markets are being quite optimistic for the NFP and unemployment rate data of the US that would be released tomorrow on Friday’s US session. The dollar is expected to gain where the major currencies would drop against it, while the S&P index would show an interesting move because recently Janet Yellen stated that the labor market still needs some kickback.
Copper plunged sharply as Chile – the largest producer of Copper – experienced a strong earthquake that has caused huge amounts of evacuation of people already, plus Tsunami warning has been issued. Therefore, the country’s major commodity has dropped its value while investors are shifting towards gold that gained more than $13 in a day.
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