In Asia, most markets are close to their January highs with the crucial exception of Hong Kong. Signs were last week that the Hong Kong rally (and most importantly all the major China plays listed in Hong Kong) is finally gaining momentum and since the H-shares index (HSCEI) is still some 10% below its November peak of 13,800 we see strong upside potential in the short-term.

Eoin Treacy's view The Shanghai A-Shares Index continues to range below the August high and while it remains a sound recovery candidate, it is currently being outshone by other markets in the region. The Hang Seng appears to be starting to play catch up. It found support in the region of the 200-day moving average between February and March and is now rallying towards the recovery high near 23,000. A sustained move back below the MA would be required to question medium-term upside potential. The H-Shares Index has a similar pattern.