IMF Raises Growth Estimate for Asia

The International Monetary Fund said today that growth in the Asian region will come in around 2.8% this year, and jump by 5.8% in 2010 as a restart in trade and finance boosts industrial production and overall GDP.

According to The New York Times, in both cases, each estimate is about 1.5% above the IMF’s original projection in May. “Over the near term, global and domestic restocking and macroeconomic policy support will continue to propel Asia’s recovery forward,” the IMF said. “As US electronics retailers continue to rebuild inventories, Asian exports will continue to recover...”

For another perspective, see Toddo’s Where the Market Will Go.

From the Bull Pen: If you’re a bull, the Morgan Stanley A Share Fund (CAF) may be a great opportunity sitting at the bottom of the channel. Those testing the upside can set a sell stop near $31-$30 depending on your risk profile.

From the Bear Cave: If you think this correction has more room to the downside, consider the S&P 500 depository receipts (SPY). Breaking below $104 could project to $102. A buy stop can be set above $107.

A Quick Check Around the World

Asian trading closed with the Nikkei -1.83%, India -1.42%, Hang Seng -2.28%, Shanghai -2.34%, and Taiwan -2.37%.

Across the pond, we see the FTSE -0.16%, CAC -0.06%, DAX -0.01%

As of 8:10 a.m. EST, S&P Futures are trading +3.25 to 1041.00 and Nasdaq futures are +2.500 to 1682.50.

A Look at Commodities

Over in commodities, crude oil is +0.38 to 77.84 while gold is +4.20 to 1034.70 this morning. Silver is +8.50 to 1632.5 and copper +0.550 to 293.60.

The dollar index is -0.0900 to 76.4950.

On the Radar

Economics

08:30 Chain Deflator 1.3% cons.
08:30 GDP Adv 3.1% cons.
08:30 Initial Claims
08:30 Continuing Claims

Click here for the full trading radar.

Welcome back and have a great day!