Asian markets closed mixed on Thursday after China’s Premier Wen Jiabao said the country’s economic growth target for this year is within reach and promised more efforts to support growth and create jobs. Hong Kong erased gains after Wen refrained from announcing an expansion of a 4 trillion spending package. Singapore underperformed across the region and closed 1.67% lower at 1,518.64. Volume was at 1.07 billion shares, compared with 1.09 billion traded Wednesday.
The technical outlook of STI is negative. The index opened slightly higher but soon gave up Wednesday’s gains on profit taking. It opened above the 5 days SMA and closed at the lowest since August 2003. If the index is able to sustain above 1,500 in the next few days, it may rebound towards 1,600. If it falls below the 1,500 level, it may test the low in October 2008.