Asian equities respond favourably to EU bailout
Markets were in positive territory with Hong Kong outperforming up almost 2%.
RBS said (for 11 June 2012 trading - noon):
Along with other risk assets, Asian equities responded favourably to the news over Spain's bank bail-out deal. All markets were in positive territory with at least four markets up by 1.5% or more.
Hong Kong outperformed up almost 2%. The main laggard was China, up only 0.2%, but even so, this limited gain came against the backdrop of fairly mixed May data.
For May, the trade numbers showed a distinct improvement with export and import growth of 15% and 13%, coming at almost twice the pace expected by the market. At the same time, industrial production grew sub-10% yoy for a second consecutive month while fixed asset investment just about managed to cling on to growth of 20% yoy.
Fixed asset investment growth of sub-20% yoy is generally associated with very weak economic activity. Inflation continued to moderate, up only 3% yoy.