Fall in Japan, rise in China stocks may hint at renewed Asia interest
Daiwa Securities said in a report that last week's plunge in Japan's shares and the favourable chart patterns in Chinese shares "may presage renewed buying in Asian stocks". Daiwa feels the rebound in equities in Asia could "build into a clear uptrend. We see the uptrend holding steady through next spring as China shares tend to perform well through March of the year when the National People's Congress is held to approve a new five-year economic plan". The Islamic New Year "roughly coincided with an upside trend reversal in the Nikkei Stock Average in each of the past several years". Current dips provide great entry opportunities in markets such as the Nikkei, Daiwa concludes.