Hang Seng holding up because interest rate down, and Hang Seng has higher proportion of real estate plays than other indices/markets.
China economy prospect is somewhat reflected in the Hang Seng, and China, at least economically, is looking pretty good given its continental scale and lack of dependency to export when compared to the other large export nations (% of GDP, etc). We are now getting ready for Red Chip echo bubble, just as soon as DJIA and SP500 can give up the fight.
These are plausible explanations, but when the crunch time comes, HKers will sell with enthusiasm, just for the flip and buy back 30 days later.
HK's market suffered relatively little in the Asian Crisis, much like going for lobotomy, quick, deep, and then sunny outlook all over again. We are optimists, but lobotomized optimists.
On Japan, the professionals here seem reluctant to borrow Yen, having been burned the last time so very badly, and they think the US$ will go down, just not sure against what.
Chugs, Jay |
