Dec. 4, 2009 (Chinavestor) China stocks advanced in Shanghai but succumbed to profit taking in Hong Kong ahead of the jobs report in the U.S. The Hang Seng Index (INDEXHANGSENG:.HSI) fell in the morning but reversed course in the afternoon session and closed only 55.72 points lower, ending the week 6.45% higher for the index. The Shanghai Composite Index (SHA:000001) advanced 1.6% on Friday ending the week on a high tone. The Shanghai Composite advanced 7.14% for the week, its best gain in three months.
U.S. index future point to a strong open after a much better then expected jobs report. Statistics suggests U.S. employers shed only 11,000 jobs in November, providing a sign of relief. This in turn makes a strong case for China ADRs, a group of stocks that are attractive from a technical point of view. For a stock specific break down, visit today's overbought/oversold report.
The strong advance of the Shanghai Composite Index (SHA:000001) and the Hang Seng Index (INDEXHANGSENG:.HSI) are clearly captured by the following overbought oversold indicator. U.S. Treasury bills have moved significantly as investor bet on the strong performance of the U.S. economy. The China Real Estate ETF (NYSE:TAO), Morgan Stanley China Fun (NYSE:CAF) and the FTSE/Xinhua 25 Index Fund (NYSE:FXI) has more upside left based on the strong standing of the SSE Composite index (SHA:000001) and the Hang Seng index (INDEXHANGSENG:.HSI).