The stock markets of other developed economies including that of China, Japan, and Germany tend to follow the move that is taken by the Wall Street the previous day, and so the Asian stocks gained early this morning where the investors are enjoying a bullish momentum in the market as the U.S. economic recovery is on the line based on which the Federal Reserve had enough confidence to cut down its bond buying plan by $10 billion.
However, something contradictory happened in Japan where the stock market plunged by 0.3% after the markets opened from a holiday. This downward move was witnessed as a result of the economic report that was released by the Cabinet Office where they mentioned the term ‘deflation’ that has shown up after 4 years time as the prices are standing still.
The South Korea’s Kospi index saw a positive change by 0.2%, Australia’s markets gained by 0.7% and the Chinese Hang Seng index soared by 1.8% since the China’s money-market rate declined sharply since the past 2 to 3 years time as the central bank used open-market operations method to inject the money in the market for three weeks.
Mitsubishi Motors shares are performing pretty well as they added the value by 4.3% and are currently trading at 1100 yen per share, as the company raised the forecast of its full-year-net-income by a massive figure. They are expecting the earnings to shoot up by 43% that means their earnings are estimated to be around 100 billion yen for the year 2013, since they managed to cut down their redundant costs in an efficient way and a weaker yen allowed them to export substantially that resulted them in having even more sales.
Gold is still under pressure where it has sustained below the psychological level of 1200 that has now become its resistance. Currently the metal is trading at 1196 where sellers may easily go short on it with tight stop losses since the overall outlook for the metal is bearish.
To contact the reporter of this story: Jonathan Millet at email@example.com