Markets Generally Bullish after the Chinese New Year

Markets in Asia moved generally higher today. Some markets have been closed especially on Monday because of the Chinese New Year. The Chinese are ushering into the year of the OX or bull. The bull is a hardworking animal in the Chinese astrology. Therefore, it does not symbolize a "bull" in the financial markets. Rather, it prompts believers to work harder. This may be true as economies are slowing down and those who do not work hard may get axed.

Korea, Singapore and Malaysia indices, which were closed for two days ended on a bullish note today with 64.58 points (5.91%), 80.85 points (4.80%) and 6.94 points (0.8%) gain respectively. Japan's Nikkei and Thailand SET index which were opened since Monday has gained 361 points (4.6%) and 14.8 points (3.4%) from last Friday. Hong Kong, China and Taiwan stock exchanges are still closed. Australia's All Ordinaries which closed on Monday, up 135 points or 4.1% since last Friday.

European markets end higher as finance stocks surge. London's FTSE closed 100.8 points (2.4%). France's CAC40 index closed 122 points higher (4.1%). U.S. stocks rose on Wednesday, capping the S&P 500's longest winning streak since November, as financial stocks soared on optimism the Obama administration was making progress on a plan to relieve banks of money-losing assets (Reuters). The US DOW was bullish with 200 points higher or 2.5%.

Are investors really gaining confidence on the rescue plans set up by their goverments? Or is it just a technical rebound or a would be dead cat bounce? Market Strategist Mr. Benny Lee thinks that the rebound was due because of its oversold nature and should advance about 10% from the recent lows in the respective countries indices. However Mr. added that "the rebound may just be temporary as the down trend pressure is still strong and market is expected to be in a volatile mode balanced by investors confidence on the government financial stimulus and the deepening global recession".

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