April 9 (Bloomberg) -- Investors should buy more Asian stocks relative to global equities after the MSCI Asia-Pacific Free excluding Japan Index broke above its resistance, CLSA Asia-Pacific Markets said.
A rally this month helped the MSCI regional index break through the resistance provided by the October and January highs, triggering a buy signal, CLSA analysts Laurence Balanco and Tiara Fontanilla wrote in a report yesterday. They upgraded the index to “overweight” relative to the MSCI World Index.
Asian stocks rallied about 15 percent in March, the best monthly performance since October 1998, as governments from the U.S. and Japan widened measures to ease the financial crisis. Gains last month were more than double the 7.2 percent advance in the MSCI World Index.
The index’s relative performance oscillator, which tracks the performance of the gauge relative to its 40-week weighted moving average, also moved into the “overbought” region for the first time since November 2007, CLSA said.
Analysts use moving averages to identify trends and find support and resistance levels for prices.
“While it does suggest that the market is a bit stretched short term, it also depicts a positive change in momentum characteristics,” the analysts wrote in the report.
To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net
My opinion: I hope and wish this is true :0)
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