Japanese investors were giddy with excitement as positive earnings reports and the announcement of a major merger flooded the news. The Nikkei 225 advanced 1.1% on Friday, while markets in Hong Kong and China remained closed for the Lunar New Year.
A building boom -- and the constrained supply of materials due to mandated energy cuts -- sent Chinese cement, metal and building-equipment stocks up Thursday. Meanwhile, Hong Kong and Japanese exporters benefited from improving consumer sentiment and falling unemployment in the U.S.
Big Steel is finally turning around, and U.S. Steel is one of the leaders. The giant global producer is well positioned to be a key player in promising U.S. and European markets, and is deftly situated in terms of raw materials and financial resources.
News that business inventories and industrial production are rising suggests the U.S. economic recovery is on track. But unlike previous recessions, there are five potential "potholes" in the road ahead. Declining employment and increasing commercial real estate foreclosures are two possible biggies.
The U.S. International Trade Commission's decision favoring domestic steelmakers over Chinese exporters brought an immediate condemnation from China. It also likely ensures that the growing spat, which also includes Europe, will extend into 2010.
