Nov. 4, 2009 (Chinavestor) China stocks were strong in Asia on Wednesday. The Shanghai Composite index advanced +14.31 points or 0.36% to 3,128.54 points at the close. The index broke through the physiologically important 3,000 level on Monday and managed to eke out small gains since then. But as the overbought/oversold indicator suggests, the Morgan Stanley China Fund (NYSE:CAF) is behind its peer and has some ground to make up. Momentum carried over to Hong Kong sending the Hang Seng Index to a +374.71 points or 1.76%rally for the day. With index futures pointing to a higher open, expect China ADRs to do well on Wednesday. The private sector axed 203,000 jobs, an improvement from last month but still a painful reminder that improvement will be gradual and slow. The markets are waiting for the FED to see any changes in the policy. Assuming the FED will keep interest rates historically low, the green back will slide pushing commodity prices higher. This in turn makes a case for Chinese oil and coal companies. For momentum driven China stocks see today's overbought/oversold report: Momentum China stocks keep moving.
The picture for Chinese indices and ETFs looks good ahead he Bell on Wednesday. The Morgan Stanley China Fund (NYSE:CAF) is behind its index, the Shanghai Composite, and expect it to catch up. Despite strong gains of the Shanghai Composite, the Morgan Stanley China (NYSE:CAF) hasn't moved much in November. The global shipping ETF, NYSE:SEA, is another ETF that is expected to do well on Wednesday.