May 28, 2010, 7:00 am EDT —The Standard & Poor’s 500 index futures up 2.40 to 1103.20, as benchmark crude for July delivery was up 79 cents at $75.34. Concurrently, Britain’s FTSE 100 was up 0.41 percent at 5,216.32, Germany’s DAX up 0.63 percent to 6,137.47 and France’s CAC-40 was up 0.38 percent at 3,538.72. Add it all up to China’s expression of confidence in Europe’s ability to restore its financial stability. The euro recovered as a result, climbing to 113 yen levels from around 110 yen the previous day and gained against the dollar to $1.2400 in Asian trade. Apparently went China speaks worries about the region’s government debt crisis are over. How true it is, remains another issue? One point is clear — China controls global investment strategy. However, rest assure — China will offload euro reserves by 50 percent, or carry a further $150 billion currency portfolio loss. Even China cannot afford the hit. … Japan’s government said Friday that unemployment rose for the third straight month in April, prices kept sliding and household spending fell. Despite the triple dose of sobering economic news, Japan’s Nikkei 225 stock average jumped 123.26 points, or 1.3 percent, to 9,762.98 as investors bought exporters including tech companies and automakers. Japanese exporters don’t benefited from the euro’s rebound against the yen, but at the moment they believe so. …Hong Kong’s Hang Seng up 1.7 percent to 19,766.71 , Australia’s S&P/ASX 200 up 1.8 percent to 4,457.5. Only China bucked the trend with the main Shanghai index off less than 0.1 percent. … — With the S&P 500 index closing above 1103.16 (200 day ema/sma at 1101/1103), a test of 1125.00 would determine extent of the upside. Not the times to second guess direction, especially with low volume and long weekend.