Chinese stocks rally for 5th day as Asia's worst performer rebounds but still down -13% in 2010
The Shanghai Composite is Asia’s worst performer this year, with a 13 percent decline through yesterday as the government boosted measures to slow the economy and cool property prices. At the same time, Indonesia’s Jakarta Composite Index rallied 40 percent, Thailand’s SET Index jumped 33 percent and Malaysia’s FTSE Bursa Malaysia KLCI Index rose 17 percent.
China stocks will extend their rally as investors increase purchases in a market that lagged behind gains in Asia, according to Templeton Asset Management Ltd.’s Mark Mobius.
The Shanghai index’s rise above its 200-day moving average is a “positive sign” that signals further gains for the benchmark gauge, according to Schaeffer’s Investment Research.
The moving average may climb to April highs after the Chinese stock gauge exceeded the average for the first time in about six months yesterday, said Ryan Detrick, a Cincinnati- based analyst who studies chart patterns to predict prices at Schaeffer’s Investment. The 200-day moving average rose as high as 3,097 in April, according to data compiled by Bloomberg.
--Zhang Shidong. Editor: Allen Wan, Richard Frost
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