Hang Seng vs S&P 500/New PM in Japan/Costco still selling more gold, read KMX comments

With the 3.6% rally overnight taking the weekly gain to 13%, the Hang Seng is now higher by 21% year to date vs the S&P 500's gain of 20.5%. Everything China announced this week was not meant to be 'stimulus' but putting a floor under the deterioration in both their housing and financial markets. If successful, the 30% ish savings rate by the Chinese consumer is a lot of potential dry powder of consumer spending if confidence comes back. Playing the consumer, particularly on their spend on travel, tourism and gaming is our investment focus, along with AIA Group, the Asian life insurance business spun out of AIG in the GFC. 

Something I've said before, the growing middle class in all of Asia, which houses half the world's population, is the most exciting economic growth story in the coming decade. Growing wealth in India, Indonesia, Vietnam, Thailand, etc... and even China whose middle class will double over the next 10 years is where global economic growth will be the most vibrant I believe. Corporate Japan is also perfectly positioned to take advantage of this growth in the region. 

Speaking of Japan, it looks like they have a new Prime Minister and his name is Shigeru Ishiba, the former defense minister. The 67 year old sold himself as a centrist and why it matters for us market participants is because he also supported the BoJ's rate hiking cycle in contrast to his main political competitor who was not in favor of further BoJ rate increases and said it was "stupid" to do so. As a result, JGB yields rose overnight and the yen too is stronger. The news though came after their stock market closed which was up another 2.3% to just shy of 40,000 but will likely selloff on Monday if the yen move holds.