APAC Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The MSCI Asia Ex Japan index (AAXJ) pulled back from its recent highs and is testing its 21-DMA support. Continue to focus on high- or rising-relative strength ideas which are displaying constructive price action. Trim extended ideas.
  • Eight markets, including Japan, South Korea, Taiwan and Hong Kong, are in a Confirmed Uptrend. Three markets are in an Uptrend Under Pressure. China and Thailand are in a Rally Attempt. India was shifted to an Uptrend Under Pressure.
  • South Korea’s KOSPI trades close to a 52-week high and is less extended from a historical perspective. It has the best risk/reward in our view. Favorable corporate governance reforms are expected to be a tailwind.
  • Breadth in South Korea is strong. Among major markets, it has seen the most improvement in stocks trading above key moving averages over the past eight weeks. Financial, Health Care and Capital Equipment are among the leading sectors in terms of relative strength. Refer to page 10 for a list of stocks near pivot from South Korea.
  • Highlighted Focus List Idea: Samsung Electronics (SGL.KR; 005930 KS).