Recently, we did mention that local indices might have reach a small bottom. We mentioned that Nikkei may have stopped its downward movement at 13700. And perhaps local Asian indices might have stopped its downward consolidation also.
Today, Nikkei futures rallied more than 590 points. It got some help from good economical data from China PMI, Europe PMI, Italian PMI, and US ISM reports! It seems like the whole world conspires to beat the manufacturing estimates. One after another, it shows growth in the economy. Even Crude Oil rallied near to $3 in 1 single day.
Our research team has done some research on tomorrow's non farm payroll. We think that chances of exceeding expectations is high. Just prepare yourself for a good day 2moro from US. But note that predicting non farm payroll results are not easy. Do take it as a point of reference in your investment decision.
If tomorrow non-farm results are not a problem (we think so), we expect STI to go for 3300. We expect Nikkei to try a shot at 15000 again. Hang Seng recently is the best index, and maintains its strength shall rally. KLCI may turn to recover its drop from 1800 by trying to hit 1800 again.
Shanghai composite shall also stay above 2000 again where we always mention that anything below 2000 is a good buy.
For US, the run so far has been amazing! It just simply can't drop. And if non farm is good, we don't expect a big consolidation.
This run may continue into September...