Asian stocks rose, with the regional benchmark rebounding to it highest since May 2008, as materials companies and energy producers led gains.
The MSCI Asia Pacific Index added 0.7 percent to 153.70 as of 11:08 a.m. in Tokyo. The 14-day Relative Strength Index on the Asian regional index was at 75.8 today, trading for a seventh day above 70, a level some traders take as a signal stocks are poised to drop.
“A lot of funds having been underweight and hence will have to pay catch-up” with the recent gains in regional benchmarks, said Andrew Sullivan, head of sales trading at Haitong International Securities Group in Hong Kong. “Some people have been so bearish that they can’t believe things can turn positive.”