Hong Kong: Far from a Quiet Week

With Chinese markets being closed all week for a holiday, one would have expected Hong Kong stocks to have a slow week.  However, reality proved that this week was as far from slow as imaginable for the Hang Seng index.  In addtion to its largest negative intraday reversal in nine years on Wednesday, the Hang Seng index had a move of at least 1% every day this week (Monday the market was closed). 

The last time the index had a week where it moved at least 1% every day was in September 2001.  Below we highlight, the Hang Seng's performance following similar weeks going back to 1990.  Based on the results, when the index is up during the volatile week like it was this week, it has tended to follow through over the next week and month.

 

Comments

[mark]

the Chinese markets were not closed this week. The hang seng was closed Monday and the shaghai was closed all week. Fxi, the index most followed in the states tracks the hang seng h shares which were trading all but Monday. You market commentators sound like fools when you say china has been closed all week. The us doesnt even have a shanghai tradeable fund. This is like saying the us markets are closed because the Amex was closed while the NYSE was open. Get your facts straight!