Bottom-picking, after officials step up efforts and some optimism creeps in, is helping lift spirits today. As one looks at the equity bounces, it is important to remember that among the biggest rallies take place in bear markets. Nearly all the bourses in Asia-Pacific rallied, led by a 7% advance by and an 8%+ surge in South Korea’s . Most other markets were up 2%-5%. Europe’s Dow Jones is up nearly 5% after falling 4.3% yesterday. US stocks are firmer, and early indications suggest a 3%-4% early gains. Bond markets are much quieter, and most benchmark yields are 3-5 bp higher.
The is seeing its recent gains pared. The has been the weakest of the majors, and it is leading the move today with a nearly 6% gain, while the and are the laggards, gaining around 0.7%. Among emerging market currencies, the has been exceptionally pressured, and it nearly 2.5% higher, while the JP Morgan Emerging Market Currency Index is about 0.25% higher.
is extending its recovery…