3min chapter

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How Did Asia Markets Respond To The US Debt Ceiling Deal?

Market Depth

CHAPTER

The Divergence in the Nikkei Versus the Heng Seng Indexes

The Nikkei and Heng Seng indices traded at more or less, you know, percent for percent with each other. But from November of 2022, until January of 2023, that ratio crash and crashed very hard. That really had nothing to do with Japan or the Nikkei, which as you can see had been more or less flat that whole time. Rather, that long Nikkei short Heng Kang ratio spike was pretty much completely a function of Chinese stocks crashing.

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