(eToro Blog) Asian market performed relatively well as they digested comments from the European Central Bank. ECB President Draghi commented in his press conference that he saw tentative signs of stabilization. The Japanese Nikkei closed up 1.34%, the Hang Seng up 0.5%, the Shanghai index down 0.95% and the Australian S&P ASX up 0.4%. Traders on OpenBook are primarily long the USDJPY with average limits at 77.60 and stops at 75.60.
The Japanese Prime Minister Yoshihiko Noda announced new ministers as part of a shakeup of his cabinet. Five ministers were replaced by the Prime Minister as he attempts to win favor among his opponents. The Prime Minister is trying to pass changes to the tax structure through the Japanese parliament. Noda is working on a tax bill that will increase the consumer tax from 5% to 8% by 2014 and to 10% in 2015. Noda appointed Katsuya Okada as deputy prime minister. Okada has been instrumental in the past for reforming Japan’s postal authority. Noda also replaced Defense minister Yasuo Ichikawa and Consumer Affairs Minister Kenji Yamaoka. Noda has achieved success as Prime Minister compared to his predecessor Naoto Kan. Kan was forced to resign over his handling of crisis in the after math of the earthquake in Japan.
China reported that its foreign exchange reserves dropped by $20.6 billion in the fourth quarter of 2011. The total forex reserves for 2011 amounted to $3.18 trillion. There are reports that up to $100 billion left China in the last two months of the year. Reports suggest that foreign investors have pulled out of China amid a decline in Chinese stock prices and a slump in the property markets. Inflation data from China shows that inflation subsided in the month of December. The Chinese Central Bank has recently cut reserve ratio requirements of banks to encourage more lending as China tries to avoid fallout of the global recession.
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