Asian markets concerned about global economy: Subodh Kumar

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Asian markets are trading mixed ahead of the crucial vote in the US. Speaking to CNBC-TV18 Subodh Kumar , Chief Investment Strategist of Subodh Kumar & Associates says the US bailout package does nothing for the other concern that the Asian markets have which is the global economy.

Here is a verbatim transcript of the interview with Subodh Kumar on CNBC TV-18. Also see the accompanying video.

Q: It is not a whole lot of cheer across Asia, infact most markets that have now opened up are beginning to trickle into the red, do you think that sort of reaction to the third phase of the US bailout package would indeed has come with a lot of riders that of subject to approval to the congress nod?

A: There are a couple of things to look at. Firstly the bailout package I think is a good package but that is more in more in terms of establishing a floor for the financials and the markets worry has to do more with the economy. So we are seeing things like freight rates going down and worries about cyclical stock. What we are seeing in Asia is that people are concerned about the global economy and it's not just the bailout package in the US.

In Europe a major European bank has had a large capital infusion from the Central Bank in Europe as well, so the news about the weakness in the financials remains.

Q: From a market perspective this USD 700 billion with the USD 350 billion rider, would the news be positive or negative?

A: We have to look at the objective of the programme and that is to butters up the financials and it's positive in that sense. I believe that there is a good probability that the market lows we saw a few weeks ago may have led to the bottoming of the markets but the package itself does nothing for the other concern that the market has which is the global economy.