MSCI Asia-Pac Index sold off sharply....>

ASIA STOCKS: MSCI Asia-Pac Index sold off sharply last week, dropping below the

50-DMA & 23.6% retracement of the Aug 6 - Jan 20 rally, which held firmly since

mid-Dec. The index is heading towards support from a crossover of the 100-DMA &

the 38.2% retracement of aforesaid bull market located at 165.14/02. A break

below these levels would clear the way to the 163.11-162.37 area, where the

index formed a base through Nov & early Dec as a triple bottom pattern unfolded.

- The driver was obviously the Wuhan coronavirus & associated worry about its

econ toll, which has already started to spill over across the region. Investor

sentiment was dented as consecutive countries confirmed virus cases, while

analysts estimated potential damage to industries ranging from tourism to tech.

- Volume was sapped due to LNY & ticked higher as consecutive regional mkts

re-opened. China (2nd biggest contributor to the index) returns today; local

policymakers unveiled several measures to ameliorate exp. sell-off.

- Yes, the virus dominates news flow; but worth remembering about this week's

MonPol decisions from the RBA, RBI, BSP & BoT as well as data incl. Caixin PMIs.

- For the chart see: http://tiny.cc/MXAP