- Asian stocks are trading mixed, having lost $5 trillion so far this year.
- More than $6.7 trillion have vanished from global equities since late September, according to Bloomberg.
- The Shanghai Composite has charted a bull flag pattern on the hourly chart.
Asian stocks are on the rise on the last trading day of the week, courtesy of the recovery rally in the US stocks.
The S&P 500 rose 49 points or 1.86 percent to 2,750 yesterday – its first gain in seven days. More importantly, it created a bullish outside-day candle on the daily chart, which is considered a sign of bullish reversal.
So far, however, the gains in the blue-chip index have failed to put a bid under the Asian stocks, possibly because the S&P 500 futures are currently reporting a 0.6 percent drop.
Further, at press time, Japan’s Nikkei is down 0.10 percent and South Korea’s Kospi has shed 1.15 percent.
The Shanghai Composite is flat lined above 2600. Even so, the path of least resistance is on the higher side, as the index is creating a bull flag on the hourly chart. A bull breakout, if confirmed, would open the doors to levels above 2800.
The value of global equities has dropped by $6.7 trillion since late September and the Asian stocks have lost $5 trillion this year, possibly due to U.S.-China trade war and the rising rate environment in the US.
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