Australia Stock Rally Shows China Link Waning: Chart of the Day
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The nine-year link between Australian and Chinese stocks is breaking down.
The CHART OF THE DAY shows the 120-day correlation between the S&P/ASX 200 Index and Hang Seng China Enterprises Index reached 0.3 last month, the lowest since December 2004, compared with an average of 0.6 over the period. A reading of 1 would indicate the two assets are in lockstep, while zero would represent no relationship.