Morgan Stanley is eyeing a dip in the HSI within weeks.
Bloomberg reports that a wide range of Wall Street strategists are cautioning against an imminent pullback in Asian equities as Morgan Stanley is the latest to join the chorus of market experts who foresee a meaningful dip in the Hang Seng Index within weeks.
Goldman Sachs Group similarly predicted that with the exclusion of the Japan Index, the MSCI AC Asia Pacific could drop more than 10% even as both gauges are currently on one of the longest recorded bull runs.
The Hang Seng Index fell as much as 0.9% on Wednesday before rising 0.4%.
“Market sentiment at such extremely elated level suggests near-term caution for traders,” Hao Hong, chief strategist at Bocom International Holdings Co., wrote in a note, saying that the risk of a correction in Hong Kong and Chinese stocks is rising.
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