Asian mkts have seen relief rallies: Asia-Pac Asset Mgmt.

James Chirnside, Managing Director ofAsia Pacific Asset Management said the Asian markets are subdued and are waiting for the next cue up or down. He told CNBC-TV18, “I honestly think that we are still in the grip of a bear, and I do believe that the recovery we are seeing since the end of March has been simply a relief rally.”

People are waiting to see what the effect of improved credit conditions and Central Bank activity will be on the earnings said Chirnside.

 
Excerpts from CNBC-TV18's exclusive interview with James Chirnside:

Q: What is your sense, it is very quiet and subdued across Asia this morning?

A: Yes, it is subdued. I think the markets are looking for the next cue up or down right now. Since the end of March and the best part of six weeks or so, we have seen significant rallies throughout the region probably best described as relief rallies.

I think people are now waiting to see what are the effects of the improved credit conditions and the Central Bank activity and see what sort of effect that is going to have on earnings.

Q: What is your outlook on the Shanghai index, bit of a volatility seeping in there, it was up by about half a percent but now it is down by about half a percent?

A: For Shanghai that is not necessarily enormously volatile but Shanghai has been one of the worst performing markets since the credit crisis started to hit equity markets back in August last year. But I think that there is some value beginning to present itself for now. I think that the government has made it quite clear that it is prepared to intervene to stabilize markets in China when they get out of hand.

Having said all of that I honestly think that we are still in the grip of a bear and I do believe that the recovery we are seeing since the end of March has been simply a relief rally. There is enormous headwinds faced by equity markets globally and I do not think any particular market is going to shake those off particularly energy prices, inflation, food prices as a part of that inflation picture and credit markets, the availability of credit is still very tight.

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