Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The MSCI Asia Ex Japan index (AAXJ) broke out to a new 52-week high. Major markets continue to trade constructively above logical support. Focus on stocks that are trading above logical support and close to pivot with rising relative strength. Trim extended and lagging ideas.
- Eight markets, including Japan, Hong Kong and India, are in a Confirmed Uptrend. Two markets are in an Uptrend Under Pressure. Three markets, including China and Australia, are in a Rally Attempt.
- South Korea’s KOSPI broke out of a two-week consolidation to make a new 52-week high. The KOSPI’s price percentage performance vs the 40-WMA is at ~22%, and the index is extended from a historical perspective. Near-term consolidation, as the 40-WMA catches up, is healthy in our view. Financial is the most extended sector, while Capital Equipment is pulling back.
- The KraneShares CSI China Internet ETF (KWEB) broke out after Nvidia announced the resumption of sales of its advanced H20 chips to China. This positive catalyst could lead to relative outperformance of the Technology sector in Hong Kong.
- Technology continues to outperform in APAC, and the outperformance is led by Semiconductor and Hardware related Industry Groups (IGs). Refer to page 13 for a list of Technology stocks that are near pivot or closer to entry points across APAC.
Highlighted Focus List Idea: Tencent (TCNT.HK; 700 HK). Refer to page 9 for an annotated chart.