Just gonna try my hand at looking into the tea leaves that are the greater China region.
First, there’s the main problem that the markets closed higher in Hong Kong on Friday, before the downgrade rumours hit (HSI futures were even closed at 19 274, indicating resistance break). Then came the downgrade rumours. Then came the aptly named afternoon-rally monkey and lifted US equities to within 0.5% down, with futures again going higher into within 0.25% down. Then came Taiwan election results, which are undoubtedly good for business in this region as the China-friendly incumbent Ma and his party KMT took it down.
So, for stocks in the HSI, I suppose the overarching mood is bullish. Friday price action beat back thursday’s bearish doji with a one legged doji, where the leg was down and failed to make a lower low, meaning highly bullish again. Thus, Thursday could have been the “breathing” of the rally, further enforced on Friday. It’ll be interesting to watch nonetheless.