ByBrendan Ahern,
Senior Contributor.
Asian equities were down as Japan, Taiwan, and South Korea were lower by nearly 9% for the week.
Growth stocks, especially semiconductor and AI related, underperformed in a very broad sell off as decliners beat advancers by a very large margin on higher volumes. Mainland China and Hong Kong’s overbought conditions have quickly reversed into oversold from a Relative Strength Index (RSI) perspective. The percentage of stocks within the Hang Seng Index above their 10-day moving average has gone from 90% on November 13th to 28% as of yesterday (today’s value wasn’t available, though obviously lower).
Hong Kong investment banks issued “Notices of Mandatory Call Event and Early Termination” of Callable Bull/Bear Contracts and derivative warrants on individual stocks, indices, and ETFs as they hit the lower price limits allowed. Not the culprit in today’s downdraft but this likely didn’t help.
