June 8, 2010 (Chinavestor) China stock indices rose in Asia on Tuesday as value investors entered the fray. While financials and insurers continued to under perform the rest of the market pulled the Shanghai Composite Index (SHA:000001) higher by the end of the day. Trading was even more enthusiastic in Hong Kong. The Hang Seng Index (INDEXHANGSENG:.HSI) rose 109.3 points or 0.6% to 19,487.48 by the end of the day. For a list of the most active China stocks in Asia look at the chart below.
Index futures point to a higher opening ahead of the Bell on Tuesday. Ben Bernanke, FED Chairman, commented yesterday that the economic recovery is on track; jobs creation in the Midwest helped mitigate the economic stress of the nation in April. Foreclosures fell in California and Florida, another key indicator in dealing with the economic recovery.
Most economic news are coming later the week - such as retail sales data for May on Friday or the trade deficit a day earlier.
Traders were enthusiastic in Hong Kong earlier the day, sending the Hang Seng Index (INDEXHANGSENG:.HSI) 109.33 points higher. Value investors snapped up shares of China Unicom (HKG:0762) (NYSE:CHU) and China Mobile (NYSE:CHL) (HKG:0941) but Yanzhou Coal (HKG:1171) (NYSE:YZC) fell as price of energy remains under pressure.
There is not a single Chinese ADR that's trading above their 20-DMA, a sign of a complete loss of short term momentum. But this won't last for long, creating opportunity for the smart investor. Expect explosive stocks to outperform the broad market. For a stock specific technical analysis of the China ADR universe visit China stocks watch list for June 8, 2010.