Asia to decouple from US this week?

Over in the US, the markets appear that they may still undergo more consolidation while the Asian counterparts seem to have bottomed out and ready to rally.

I believe that the Shanghai market has just bottomed last Friday and has the potential to lead the Asian market higher. Hang Seng would likely be the co-leader. I still like Singapore but Malaysia could lag a little due to its uncertain political cloud. Also, I believe that the plantation sectors has peaked. So, the upside for these stocks would underperformed against the rest of the other sectors. 30% of the KLCI is now made up of plantation counters, and this would likely keep a lid on the upside for the KLCI. Nevertheless, Malaysia could continue on its rally to close the gap at 1263-1283. With a little bit of luck, it could possibly hit 1,296 as well this week.

STI could continue to head to 3,150 before rising to test the 3,268 level again. Banks and property are the sectors that I like. I also like the S-shares traded on the SGX. C&G Industrial, and China XLX are a couple that I like although China XLX has moved up quite a bit.