One day after China mainland markets came back after the 4 day holiday, Hong Kong joined the working world after their 5 day market holiday. Since Hong Kong last traded, the S&P and Nasdaq are both up about 2.5%. Hopes were high that the strong performance in US markets while Asian markets were on holiday would give them a boost to halt and turn around the slide that they have been in ever since the last holiday for lunar new year back in February.

These hopes were not realized. When mainland China opened Monday night, they barely hung on to unchanged despite the rally in markets in other regions. When Hong Kong opened last night, the Hang Seng index immediately sold off from opening levels, shedding about 1.5% in the first 30 mins of trading. It appears that whatever is causing the massive aversion to risk in Asian markets is still a significant factor, and the lift that markets were seeing from the strong US performance was just seen as a selling opportunity.

I see the Hong Kong market’s performance last night as sort of a litmus test for risk appetite in the whole region. It failed that test, and that somewhat squashes the glimmer of hope for a quick rebound in HK listed Chinese tech companies, as well as the possibility that buying in the region could be a catalyst that would finally break BTC free from the tight range it has been trading in these past few weeks and start off a move to new highs. This morning, Crypto is under pressure, along with Chinese equities. We’ll see if the US market can help bring in support, but even if it can, the prospect for a new quick move higher seems like a less likely scenario than it did a few days ago.

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