Weekly Wrap

Same as last week, the Asian three indices i.e Shanghai, Hang Seng and Straits Times outperformed the US three major indices this week.

SSE and HSI are the only two green indices with weekly gain of 3.5% and 2.2% respectively, mainly attributed to the announcement of cross trade between both markets by China government. STI not much affected by the US sell-off, lost little 14.5 or 0.5%.

US markets were sell-off heavily for the week with 2.4% to 3.1% loss. Possible due for correction after their surprised run-up since last year. The stocks there are already "very expensive" and investors turn to value from growth now. HSI and SSE are the two markets at very low valuation. It's possible funds are flowing back to Asia from the US. Anyway, US markets are still in up trending though a correction is possible.

STI daily chart with its target projection.