Australian stocks marked a 12-week high this morning before paring gains as an index of regional shares headed for its best week in more than two years.
At lunchtime the ASX 200 was ahead 25 points or 0.6% at 4373 after hitting 4417 in the first quarter of an hour of trade. Most sectors were trading higher, led by financials +1.2% and materials +1%. Defensive sectors, including telecoms, utilities and gold accounted for most of the morning's falls.
Asian markets continued to rally amid hopes that Wednesday's historic summit marked a turning point in the European sovereign debt problems that have crippled global equity markets over the last few months. Japan's Nikkei rallied 1.38%, Shanghai 1.69% and Hong Kong's Hang Seng 2.44%. Dow futures were recently off 13 points or 0.1%. The MSCI Asia Pacific Index was recently up more than 7% for the week.
"What they've done in Europe is put off the day of reckoning for a period of time," JPMorgan's chief Asian and emerging-market strategist told Bloomberg. "The US economic data is better. It's unlikely we'll retest the October lows."
Crude oil futures gave back 19cents this morning at US$93.63 a barrel. Spot gold was $3.70 stronger at US$1,747.60 an ounce. The dollar was buying US$1.0702.
The problem with euphoria is it's so damn ephemeral. Didn't take long to wear off this morning, but we can hardly complain after running more than 270 points in a week. Here's to a return to something akin to "normal" trading conditions. So-so morning here. Traded dips in AMC and DLX for peanuts and took profits in VOR, probably too early. Rest of the day depends on how far MSB bounces. The shorts have run riot and I hope to see some covering before the close.
