Asian Stocks to Drop in Autumn Before Gain: Technical Analysis

By Shiyin Chen

July 6 (Bloomberg) -- Asian stocks are set to drop over the next few months, setting the stage for a rally toward the end of the year, based on past trading patterns, Citigroup Inc. said.

South Korea’s Kospi index may have reached a “near-term ceiling” of around 1,435 and may fall as much as 310 points through autumn, Citigroup analyst Yutaka Yoshino said. The Taiex index in Taiwan may decline as much as 1,890 when it peaks at around 7,080, while Hong Kong’s Hang Seng Index may reach a high of 20,210 before falling as much as 4,270, and then rising again, the analyst added.

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