Asian Markets: Crossing the Bull Market Rubicon?

For many fundamental reasons discussed in our previous articles (such as in 2009: Asian Markets Could OUTPERFORM, or in Will “Divergences” Be A Theme for 2009?, or in What Posttraumatic Stress Disorder (PTSD) Have To Do With Today’s Financial Crisis,) it has been our longstanding belief that Asian markets will likely 'decouple' or diverge and or outperform the rest of the world.

In addition, we further advanced the case that general technical indicators, market sentiment and market internals have been substantially improving in our domestic market as it had likewise been reflecting on the state of the regional performance (see Phisix: The Case For A Bull Run,) where the final obstacle to the full transition of the market cycle from a bottom to the advance phase requires the breach of the 200-day moving averages.

This week, the Philippine Phisix has been buoyed by the same regional tide and appears to have successfully hurdled the remaining last barrier.

So have Asian markets finally crossed the rubicon?

The Philippine Phisix has now popped above the milestone 200 day moving averages (red line).

Some have argued that excess capacity have plagued nations, whose primary economic activities cater to US consumers, will suffer more than the US due to "lack of domestic demand".

Well East Asian bourses, in contrast to such expectations have surged earlier than the rest.

Like Taiwan's Taiex

Singapore's STI

Hong Kong's Hang Seng

Even India's BSE index has leapt above the threshold mark.

We see the same actions in some of our closest neighbors.

Indonesia has also broken through

As well as Malaysia.
Albeit, Thailand has yet to achieve the same goal but is now at the testing zone. Although as of this writing Thailand appears to have joined the bandwagon.

Nonetheless, there are still some laggards...

As New Zealand's NZ50
The Australian All Ordinaries

And Japan's Nikkei 225.

But we shouldn't forget the leader of the pack: China's Shanghai index that has braved the negative tide and continues to post higher highs.

Yet the recent run has prompted many regional bellwethers to reach nearly oversold levels. Combined with seasonal factors perhaps there may be some weakness that may lie ahead.

Nonetheless they would seem like buying opportunities ahead of the immense liquidity driven market environment.