CONFIRMATION OF ASIA DE-COUPLE FROM THE US

Many times already we heard people are saying that Asia is de-coupling from the US. But that activity has never been confirmed. Last week as Dow Jones Industrial, S&P 500 & Nasdaq turned below their 200 day Moving Average, this is the opportunity for Asia markets (includes Malaysian KLCI) to confirm that they’ve de-couple.

If US indexes continue their downtrend and Asia continue their uptrend, the de-coupling is confirmed. Right now, Asia markets are like waiting to break-loose, like a rubber ban, like an underground earth-quake that causes Tsunami.

While this event has yet to happen, let’s wait until mid-December 2007 whereby this event can become a reality.

Next question that we should ask, when US is falling who’ll be the leader that other small markets, like Malaysia, will follow. I guess many will say either Hong Kong or Shanghai.
But these two markets are over-stretch, how?

India Sensex? Well this market is not so reflective to India’s economy, which can also be the next big consumer market. Top 20-30 companies in Sensex already covers about 80% of its market-cap. That is the reason.

So, which market will?