(Oct. 8, 2009 - Chinavestor) Better then expected jobless data helped push index futures higher before the opening Bell on Thursday. Stong market sentiment carried over to Hong Kong on Thursday, sending the Hang Seng Index up 251.31 points or 1.18% to 21,492.9. Aluminum Corp. of China (HKG:2600) advanced 4.3% making a case for her NYSE listed shares, NYSE:ACH. China Telecom (NYSE:CHA) H-shares outperformed the rest of the telecommunication sector, paving a way for a strong NYSE showing. The overbought/oversold indicator picked up China Telecom (NYSE:CHA) as an oversold value stock from last week, an indicator that is worth paying attention to.
Chinese ADRs have regained some of their momentum, as the following chart testifies, but there has been more room left to go. The number of overbought China ADRs is on the rise but is not an extreme reading either. The number of China ADRs above 50-DMA is on the rise but is still on the recovery while the RSI for the whole ADR universe is still below 50, making a case for a sustainable rally for China stocks.
Chinese ETFs have clearly taken advantage of current market strength. With the Hang Seng Index (HSI) still ahead of the FXI and other leading ETFs, the mood for ETF buyer is positive ahead the Bell today.
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