Chart of the day: Hong Kong's rally has room to run

Hong Kong's stock market has seen its key indices break out of ranges that have trapped them for two years, but the rally is becoming more fragmented. Small-caps have started to decline despite continued upside for large and mid-cap stocks. The proprietary Buying Power Index from analysts at Lowry Research has extended its elevated position, the overall breadth of the rally is supportive as is volume - even though the soaring turnover in the market has not delivered an equivalent gain in price indices. "In general, while the intermediate term rally is extended, there are few signs of an approaching major top," Lowry analysts say in their latest note to clients.