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Rumor Bought, Fact Sold
Speculation that the US Senate would pass the large stimulus bill worth around 10% of US GDP is thought to have fueled a bounce in equities in recent days. The bill was approved and will now go to the House, where a vote is expected tomorrow. If the rumor was bought, the fact has been sold. The first to crack was the Asia Pacific region. Equities were mixed with the Nikkei shedding 4.5% and the Kospi off 1%. China and Hong Kong markets also slipped. Australia resisted and rose 2.3%. Indonesia, returning from yesterday's holiday, played catch-up and jumped 10% (which also helped lift the rupiah). Led by energy, ... (full story)