Respite May Be Close for These Battered Asian Stock Markets
- Shanghai Composite jumped 4.5% after similar RSI in February
- STI rebounded 12% in two months last time it was oversold
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The past two weeks have been ugly for Asian stock markets, but the selloff might have gone too far.
That’s what an indicator of market momentum is hinting at. Benchmark gauges of China, Malaysia, Thailand, Singapore and the Philippines have entered oversold territory -- their relative strength index has fallen below 30 -- signaling that the losses may have gone too far. Most of those measures were still flying high just weeks ago.