Asian shares firm on US optimism

Asian stocks stayed firm at its 16-month high Monday morning as better growth outlook for US and China gave raise to modest optimism.  This came  after US consumer confidence plunged in early December as fear over imminent  tax raises and spending cuts, the fiscal cliff, outweighed the better than expected raise in non-farm payrolls job data. Unemployment fall from 7,9 to 7,7 % in November adding 146 000 new jobs suggests a modest momentum in  US economy. The drop in unemployment figures is, however, mainly due to 350 000 people leaving the labour market.
The Asia Pacific share index  rose 0,3 percent.  The index  was up 1 percent last week for its third successive weekly gain. Regional Asian market was Sunday further boosted when China reported a pick-up in factory output and retail sales after stagnating for seven quarters.  Chinese exports and imports were, however, delivering below forecast presenting a mixed picture.
The Euro/USD continues to slide. Euro  reached a two week low of 1.2876 on Friday after the German central back warned that Germany,  the biggest economy inside the euro zone, might soon enter into recession.  The Euro  is at present trading at 1.2893. The pro Euro Italian Prime Minister, Mario Monti, announced during the weekend that his government will withdraw. That will put the Euro under increased pressure. The development in ten-year Italian bonds which are seen as a main confidence barometer for investors,  shall be closely followed today.
The American dollar  is up  0,3 percent against a basket of major currencies. Commodity markets led by copper, are generally firmer on expectation of stronger Chinese industrial demand. Oil prices are stabilizing after falling steeply last week.  Brent crude trades at USD 107,40 a barrel. Gold (1706) and silver (33,14) are up from Friday.
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