Rebound in Asian mkts unsustainable: SCB

Asian markets were trading mixed. China's Shanghai Composite gained 2.25% or 59.95 points at 2,729.84. Taiwan's Taiwan Weighted was up 0.07% or 7.92 points at 7,233.33. Singapore's Straits Times rose 0.26% or 7.54 points at 2,900.08. However, Japan's Nikkei was down 0.06% or 8.43 points at 13,229.46.

Lim Say Boon, Chief Investment Strategist, Group Wealth Management at Standard Chartered Bank on answering a query on whether growth concerns were still looming large for the Asian markets said that any rebound in Asian markets is not likely to be sustained. He said at best they would see modest little technical rebounds in what is essentially pretty bad bear market.

Speaking to CNBC-TV18 he said, “In some markets we are already seeing capitulation and we have long since seen capitulation on the Shanghai Composite Index and we are starting to see capitulation in some of the other markets.

He further added, the fact that US is already officially in bear market territory will overhang the Asian markets and inflation is likely to be much greater problem in the emerging markets and in the Asian markets. Growth is almost certainly to slow and is likely to slow sharper than most people are hoping for. Slowing of growth and rising inflation is a pretty toxic combination, said Boon