ByBrendan Ahern,
Senior Contributor.
Asian equities were lower, except for Vietnam, as the US dollar strengthened slightly overnight.
Higher for longer and the possibility of no further US interest cuts in 2025 weighed on regional growth stocks, which was also worsened by US technology sector valuation fears. Hong Kong and Mainland China had another "revenge of the nerds" moment, as value stocks outperformed on light volumes and markets faded from morning gains in afternoon trading.
Both Hong Kong and Mainland China indexes are working off overbought levels with the reative strength index (RSI) at +70 since late September. Lower expectations going into Q3 financial results is not such a bad thing, though. The significant Hong Kong IPO pipeline was a factor for growth stocks, as investors are selling current holdings to fund future holdings.
