Chart of the day: Pearl of the Philippines

If you are worried that Chinese indices have rallied too far too soon, take a look at this little gem. The Philippine Composite Index is at new record highs. This year kicked off on the best quarterly volume in three years, underlining investor interest, and momentum has been seriously bullish since June. The contrast between the strong rally since 2010 and the massive rectangle of the previous 18 years has been spotted earlier in other emerging-market indices, including India and Indonesia. It denotes a seismic shift in economic fundamentals, business and investor attitudes. We believe there is a chance the index will keep rising to measured targets at 9,500 and 10,000 points.