Flat Here, Asia Hammered

• Posted by UpsideTrader
• on September 28th, 2009

Asian equity markets have opened the week on a down note as optimism over the end of global recession continues to wane, giving way to concern over the nature and pace of recovery.  Nikkei225 is at two-month lows, leading the regional decline and closed down about 2.5%.

Administration’s recent stance of non-interventionist FX policy is being put to the test, as continued Yen rally is being felt most acutely in export related sectors. Technology and consumer goods names led the slide in Tokyo, while basic materials were also one of the weakest sectors across the region.The Hang Seng also closed down 2%.The Kospi closed down 1%.

Merkel and the right were winners in Germany and the DAX is up about 1%, Businesses like that win, as it means lower taxes.

Xerox is buying ACS for $6 billion and Johnson and Johnson makes a significant biotech investment.

The unemployment rate for young people, 16-24  (non-student) has exploded to 52%, a post World War2 high, and those considered “chronically unemployed” (over 27 weeks) is also at post war highs.

Watching the movement in the dollar will be key this week, it has been so accurate this year in predicting market movement,

Have a great week!!!

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