Asian Markets

Singapore STI's intraday low of 2680 is 30 points away from its support level of 2650. In the final two hours STI rebounded 51 points to closed at 2731. It may form a 'Head and Shoulders' with 2650 as its neckline.

Same as STI, Hang Seng rebounded strongly in the last two hours of trading and managed to recoup 440 points to close with a gain of 86 points. Both the indices are at their early stage of major wave C.

Korean KOPSI is going for an expanding A-B-C, 3-3-5 formation, major wave C will have to close much lower than major wave A.

After setting a historical height in year 2000 during the dot-com bubble run up, Taiwan TWII appears to form a major A-B-C-D-E waves. Major wave E has started.

Nikkei 225 of Japan has been moving along its own course since the collapse of its asset price bubble in 1989. Its current price of 8628 is 30,288 points below its peak at 38,916.

At the height of the bubble, the total Tokyo stock market capitalization represented 44% of the world's equity capitalization and the total real estate values of Tokyo Prefecture (2187 sq. km) was higher than the whole US real estate values.

In 1991 the total land in Japan was valued at about 5 times that of the US. Land prices were highest in Tokyo's Ginza District that fetched over US$139,000 per square foot (US$1.5 million per sq. m. or US$1.5 trillions per sq. km.)

From the above, one can see that even in 2000 (10 years after the Japanese assets bubble), land in Manhattan sold for only $2300 per square foot.

Since the 2007's high, Nikkei has been forming its major wave E.

A Little Bit on Politics

Brigadier General, Datuk Mohd Arshad Raji

"The NEP formulated following the aftermath of the May 13, 1969 racial riots was aimed at resolving the economic imbalances among races and improving upon the economic and social well being of the Bumiputra. But till today the government is still stuck with the same rhetoric that priority is to better the economic and social prospect of the Bumiputera. Do we need another 50 more years before the Bumiputera can come out of its predicament? I honestly doubt we can, given another 100 years without a drastic change in the mindset of governance of our present and future political leaders."

Click 'Muhyiddin - 50 years too late' for full article.

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