Asian benchmarks outside of Japan are closing out higher this morning, with the MSCI Asia up 0.7. The yen advanced and safe havens saw outflows, as risk appetite continues to remain buoyant. Equities are once again climbing a wall of worry, where the anticipation and absence of risk-negative events keeps the market stable in line with moderate inflation and low rates. The fears just a week ago that the market had got way ahead of itself seem overdone given recent price action.
The big story in the market right now is gold. The yellow metal closed out last year with one of its worst performances to date, being hit by bearish calls from banks and huge withdrawals. This year, however, is looking to be different. For now, gold has made its lows and left them behind. And the fact that gold has rallied more than $100 from those lows is a positive sign, drawing in more capital from other asset classes.