OnyongJun (98.65)

China Markets the new Equities Market leader?

December 10, 2008 – Comments (1) | RELATED TICKERS: FXI , PGJ

Is it just me or is it that China appears to be leading global markets movements?

It's no secret that China equities led the downward spiral of any equity related investment. Even today when most markets are seeing mult-year lows, China stocks seems to be the biggest losers. Losses in China shares averages North of 50%!.... Ouch!!!

Could China shares lead in the other direction?

There are early signs that they will. 

Today China markets closed higher substantially. The Hang Seng Index was up 800+ points. The CSI300 up 2.72%, The ShangHai and Shenzhen indices both up over 2% while the Taiwan TAIEX  was up 4+%. And this was on a day after the major US indices were down big time, again. I seem to remember that this has happened at least twice before the last week or so.

I post this because someone on the MarketWatch boards asserted on a post on a news item reporting the early upward movement of Asian Stocks for Wednesday that it cannot hold and end up down for the day to follow the lead in the US markets.

Waking up this AM in the US Eastern time Zone was a rare treat as Bloomberg was reporting on their early reports about the positive closes in most of the Asian Markets.

I dare say that we have seen the bottom and China will take the lead in pushing the Global Markets higher.....knock on wood.....

On a note of gloom here's a link that paints a very negative view of the Economy. I keep news like this in the back of my mind to keep me on edge and be ready to head for the exits, just in case....

http://www.marketoracle.co.uk/Article7695.html