The big 4.5% drop in Chinese stock market on Olympics opening day was probably due to a scare in terrorism on the opening day in China. While there was a small bomb / smoke machine in Causeway Bay in HK on Friday, there wasn’t other terrorist news as far as I know.
With the opening ceremony going pretty in order last Friday and the big jump in US equities Friday night, Asia will definitely open a lot higher on Monday. And the Chinese markets should continue to go up because of the successful Olympics opening and the worry of terrorists attacking during the Olympics opening ceremony is gone.
LONG Hong Kong Index, Shanghai Index on Monday
