In 2008 when Dow fell, all the Asia Pacific Bourses fell in tandem with the Dow. However when Dow was approaching its November 2008 low, some of the Asia Pacific Bourses behaved differently. At this current last phase of Dow down south, more divergences were observed. Among the Asian Pacific Bourses, Australia and Taiwan Bourses followed Dow closely as shown below. All set a low in November. Australia seemed to be the weakest, it has been hanging around its November low lately. Taiwan seemed to be moving away from the Dow in February, it has decided to follow China instead of the US.
Malaysia, Singapore and Korea markets have shown a stronger undertone than the abovementioned three markets. When Dow set a new low in November that was much lower than its October low, these three markets merely touched their respective October lows to form double bottoms as shown below.
The strongest market was China market, followed by Hong Kong and Japan. Infact all these three markets seemed to have decoupled from the US in November. When Dow set a November low that was lower than its October low, these three markets have their November lows higher than their October lows.
For China's Shanghai market, it appears that the Major Wave A has ended in October 2008. The Major rebound Wave B has started while the Dow is trying to finish its last down phase of wave 5 of major wave A. The Korean Market is about to break its January height of 1228, if it can break it within the next few days, Korean market will be the second Asia Pacific Market to move ahead of the US and I believe the rest will follow. It means for the Asia Pacific markets except Australia will decouple from the US market. It also means Dow may struggle in a side-way market for the next 5 years, the Asian market, led by China can reach new heights. If money doesn't flow to US, most likely it will flow to China, Korea, Hong Kong, Singapore................... and may be a little bit to Malaysia.
Malaysia, Singapore and Korea markets have shown a stronger undertone than the abovementioned three markets. When Dow set a new low in November that was much lower than its October low, these three markets merely touched their respective October lows to form double bottoms as shown below.
The strongest market was China market, followed by Hong Kong and Japan. Infact all these three markets seemed to have decoupled from the US in November. When Dow set a November low that was lower than its October low, these three markets have their November lows higher than their October lows.
For China's Shanghai market, it appears that the Major Wave A has ended in October 2008. The Major rebound Wave B has started while the Dow is trying to finish its last down phase of wave 5 of major wave A. The Korean Market is about to break its January height of 1228, if it can break it within the next few days, Korean market will be the second Asia Pacific Market to move ahead of the US and I believe the rest will follow. It means for the Asia Pacific markets except Australia will decouple from the US market. It also means Dow may struggle in a side-way market for the next 5 years, the Asian market, led by China can reach new heights. If money doesn't flow to US, most likely it will flow to China, Korea, Hong Kong, Singapore................... and may be a little bit to Malaysia.
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