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Technology stock indexes in China, Taiwan and India are entering a fifth wave of gains, signaling a “mini-mania” in Asian equities, said Elliott Wave International Inc.
A measure of technology shares on the Shenzhen Stock Exchange has completed the first two parts of its final wave and may rise a further 15 percent, even as the broader Shanghai Composite Index lags, Elliott Wave International said. The researcher said the TWSE Information Services Industry Index, part of Taiwan's benchmark Taiex index, may advance another 15 percent following a so-called contracting triangle.
“Most Asian-Pacific indexes need one more significant leg up to complete their wave patterns,” Elliott Wave said in a Dec. 4 report. “As often happens during the final leg of a rally, high-beta indexes are leading the general markets higher in a ‘mini-mania' blowoff run.”
The MSCI Asia-Pacific Index has rallied 70 percent from its year's low on March 9 amid speculation that the worst of the global economic recession has passed. The gauge has risen 34 percent this year, rebounding from last year's record 43 percent slump.
In India, the Bombay Stock Exchange Infotech Index may also gain further as its fifth wave is still relatively short compared with earlier advances, the research company said.
Tags: December, Asian, Stocks, Technology, India, China