KOSPI, HANG SENG & NIKKEI Forecast – Asian Indices Look to Continue Higher

Asian markets look strong. The first chart is KOSPI and in South Korea we’ve seen the KOSPI really start to take off to the upside.

KOSPI

Asian markets look strong. The first chart is the KOSPI, and in South Korea we’ve seen this index really start to take off to the upside. We had a bounce from the 4,900 level only to turn around and break well above 5,300 and at this point it looks very strong.

I don’t really see an argument to short this nor do I see any problems on the horizon, at least not in the short term. Keep in mind that the KOSPI is heavily tied to technology as South Korea is heavily tied to technology and therefore it will probably ebb and flow with the whole of technology. Pay attention to the NASDAQ 100 for example as a potential secondary indicator.

With that being said, I like buying dips. I think this is a market that probably goes looking to the 5,600 Korean Won level and then after that possibly even 6,000. I have no interest in shorting it; it looks like there’s a bit of a floor at the 4,900 level.

Hang Seng (Hong Kong)

The Hang Seng in Hong Kong continues to be very choppy but it is using the 50‑day EMA as a potential support level so far over the last couple of days and I think that bodes well. This one’s going to be a little bit more of a grind, but this suggests that we are probably going to eventually find our way higher.

After all, Hang Seng has been grinding for a while. Ironically, it’s tech shares that are bleeding in Hang Seng trading today, the exact opposite of what we’re seeing in other places.

Nikkei 225 (Japan)

Finally, the Nikkei 225 in Japan looks pretty strong here during the trading session as it looks like we are trying to break above the 55,000 Yen level. This of course is a market that had been a bit noisy — we saw Nintendo take a shellacking — but at this point we’re basically to the point where we’re about to break all‑time highs.

This looks like a very strong index. I suspect the 50‑day EMA continues to be a bit of a floor. Buying on the dips strategy probably continues to be the way forward here as Japan continues to lead.