- The MSCI Asia Ex Japan index (AAXJ) is consolidating in a tight range, and is testing resistance along its 50-DMA. We recommend a selective approach. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
- Six markets, including Japan, South Korea and India, are in a Confirmed Uptrend. Three markets are in an Uptrend Under Pressure. Four markets, including China, Hong Kong and Taiwan, are in a Rally Attempt.
- AI-theme markets (the U.S., Taiwan and South Korea) are trading at elevated valuations. Across most regions, sectors such as Technology, Health Care and Retail, are trading at higher historical P/Es; while Financials, Energy and Utility are trading at lower historical P/Es.
- Capital Equipment and Technology are weakening and are losing momentum in the APAC sector rotation chart. However, these sectors are still leading in terms of median RS, despite pullbacks. Energy, Financial, Utility and Consumer Staple are improving over the last four weeks. These are among the most undervalued sectors in each of the major APAC markets. Refer to page 8 for a list of stocks near pivot in APAC, that have lower valuations from a historical perspective.
- Highlighted Focus List Idea: China Molybdenum (CMOL.HK; 3993 HK).
Author: Derek Higa
Derek Higa is a senior equity analyst and a lead for the APAC region and the Consumer Cyclical sector. He serves on the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets, and compiles Asia Watch, a weekly recap of regional investing news. Since joining William O’Neil + Company in 2005, he has lent his market expertise to alpha capture, product development, and historical studies on outperforming stocks. Derek graduated summa cum laude from California State University Los Angeles with a B.S. in Finance and Information Systems. He holds a Series 65 securities license.
APAC Weekly Summary + Japan Stimulus, Value Still Leads + Anycolor
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The MSCI Asia Ex Japan index (AAXJ) bounced off its 100-DMA support. We recommend a cautious and selective approach. Most major markets remain volatile around their 21- or 50-DMA. Wait for follow-through days in markets that are in a Downtrend.
- Four markets, including India, are in a Confirmed Uptrend. Five markets, including Japan and South Korea, are in an Uptrend U nder Pressure. China is in a Downtrend. Hong Kong, Australia and Taiwan are in a Rally Attempt. Today, Hong Kong, Australia and Taiwan were shifted to a Rally Attempt from a Downtrend.
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) breached its 50-DMA for the first time since April. Several major markets are breaking below their short-term moving averages. The clustering of distribution days alongside a break below key support levels is a cautionary signal. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
- Four markets, including India, are in a Confirmed Uptrend. Seven markets, including China, Japan and South Korea, are in an Uptrend Under Pressure. Australia is in a Downtrend. The Philippines is in a Rally Attempt. China, Japan, South Korea and Taiwan were shifted to an Uptrend Under Pressure from a Confirmed Uptrend. Australia was downgraded to a Downtrend from an Uptrend Under Pressure.
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) bounced off its 50-DMA support and retook its 21-DMA. Several major markets are pulling back from extended levels and are consolidating. Look for volatility to settle and markets to hold short-term moving averages or prior logical support.
- Ten markets, including Japan, China, Taiwan, India and South Korea, are in a Confirmed Uptrend. Hong Kong and Australia are in an Uptrend Under Pressure. The Philippines is in a Downtrend.
- Overall action in APAC is still healthy, despite some dramatic pullbacks. The APAC Focus List count decreased 11% month to date. The decline was 22% for the U.S. Focus List. We have not seen a significant increase in removals thus far, which usually occurs during an inflection point in the market.
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 a 52-week high. Several major markets are pulling back from extended levels. Look for markets to hold short-term moving averages or prior logical support levels. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
- Ten markets, including Japan, China, Taiwan, India and South Korea, are in a Confirmed Uptrend. Two markets, including Hong Kong, are in an Uptrend Under Pressure. The Philippines is in a Downtrend.
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) made a new 52-week high. Most major markets remain constructive and are trading close to their 52-week high. Focus on stocks that are trading above logical support and close to pivot with rising relative strength. Ten markets, including Japan, China, Taiwan, India and South Korea, are in a Confirmed Uptrend. Two markets, including Hong Kong, are in an Uptrend Under Pressure. The Philippines is in a Downtrend.
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) made a new 52-week high after quickly retaking its rising 21-DMA. Most major markets remain constructive and are trading close to their 52-week high. Look for markets to hold above key support levels without clustering of distribution days. Focus on stocks that are trading close to pivot with rising relative strength.
- Eight markets, including Japan, Taiwan, India and South Korea, are in a Confirmed Uptrend. Four markets, including China and Hong Kong, are in an Uptrend Under Pressure. The Philippines is in a Rally Attempt.
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 sharply from 52-week highs and breached its 21-DMA for the first time since August. Most major markets continue to trade near their 52-week highs and remain constructive. Look for markets to hold above key support levels without clustering of distribution days. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
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) made a new 52-week high. Except for India, most major markets remain constructive and are near 52-week highs. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
- Ten markets, including Japan, China, Hong Kong and South Korea, are in a Confirmed Uptrend. Two markets, including Australia and India, are in an Uptrend Under Pressure. The Philippines is in a Rally Attempt. New Zealand was upgraded to a Confirmed Uptrend from a Rally Attempt.
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) bounced off its rising 21-DMA support, and is close to its recent 52-week high. Focus on stocks that are trading above logical support and close to pivot with rising relative strength.
