Hong Kong is tracking trends in the Japanese market. The market has had a very good run in the first four months of this year, will the rally spill over to May and June of this year is a very big question.
In the past three days, the market has added more than 500 points. At least 20% of the price is cream, or speculative activity. All we need is one or two negative indicators or pieces of news, and that could give investors an excuse to take profit.
I think there was some minor selling pressure on telecom stocks as the market continued to see a weaker European telecom sector due to the high cost of Germany's third-generation mobile-phone licenses.
With the China market on holiday, Hong Kong is tracking trends in the Japanese market.
The market is still waiting for HSBC results, which will have a big impact on the direction of the market.
The Japanese market is struggling to stay above 17,000, and it's still uncertain whether it can hold. An interest rate hike and a strong dollar would hurt.