Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

Technical Analysis

Long Term Allocation (Strategic view) Relative Value vs MXAP in USD terms• NIKKEI/MXAP: Long term outperformance in progress.• HSI/MXAP: Long term outperformance in progress/still expected.• HSCEI/MXAP: Bullish weekly indicators advocate for long term HSCEI outperformance against MXAP.• ASX/MXAP: ASX outperformance challenged but not invalidated (testing key support at 26.00/25.50).• KOSPI/MXAP: Long term outperformance still expected.• TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAP• Nifty/MXAP: Mixed elements. Neutral for now.Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD terms • Upgrade HSI and HSCEI from a tactical “Hold” to “Increase Exposure” vs MXAP as respective ratios reacted above supports.• Downgrade ASX tactically from “Increase exposure” to “Hold” as the ratio is currently challenging a key support.• Downgrade KOSPI tactically from “Hold” to “Decrease Exposure” as the ratio is right below a resistance for a potential KOSPI underperformance.• Ratings unchanged for Japan and Taiwan ("keep high exposure”) and maintain “Hold

Long Term Allocation (Strategic view) Relative Value vs MXAP in USD terms• NIKKEI/MXAP: Long term outperformance in progress.• HSI/MXAP: Long term outperformance in progress/still expected.• HSCEI/MXAP: Bullish weekly indicators advocate for long term HSCEI outperformance against MXAP.• ASX/MXAP: ASX outperformance challenged but not invalidated (testing key support at 26.00/25.50).• KOSPI/MXAP: Long term outperformance still expected.• TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAP• Nifty/MXAP: Mixed elements. Neutral for now.Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD terms • Upgrade HSI and HSCEI from a tactical “Hold” to “Increase Exposure” vs MXAP as respective ratios reacted above supports.• Downgrade ASX tactically from “Increase exposure” to “Hold” as the ratio is currently challenging a key support.• Downgrade KOSPI tactically from “Hold” to “Decrease Exposure” as the ratio is right below a resistance for a potential KOSPI underperformance.• Ratings unchanged for Japan and Taiwan ("keep high exposure”) and maintain “Hold

Equity Asia Weekly Research - 21 Mar 2018

CNOOC Ltd

Equity Asia Weekly Research - 21 Mar 2018