Published on Wed, Aug 01, 2007 at 09:15 | Source : Moneycontrol.com
Updated at Thu, Aug 02, 2007 at 10:29
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CFC Seymour sees buying opportunity in Asia, US
Asian markets slipped into the red today on Wall Street's decline, with Japanese stocks losing ground on banking majors Mitsubishi UFJ Financial Group and Mizuho Financial Group after their profits tumbled, while exporters such as Sony Corp. fell on the yen's gains against the US dollar.
Asian markets slipped into the red today on Wall Street's decline, with Japanese stocks losing ground on banking majors Mitsubishi UFJ Financial Group and Mizuho Financial Group after their profits tumbled, while exporters such as Sony Corp. fell on the yen's gains against the US dollar.
Japan's Nikkei tumbled 1.12% or 193.31 points at 17,055.58.Singapore's Straits Times plunged 1.30% or 45.99 points at 3,501.67.Taiwan's Taiwan Weighted slipped 0.38% or 34.84 points at 9,252.41.South Korea's Seoul Composite declined 1.77% or 34.13 points at 1,899.14.
Darius Kowalczyk, Chief Investments Strategist at CFC Seymour sees buying opportunity both in the US and Asian markets as the fundamentals there remain strong.
With regards to selling seen in Asian markets he said, "Asian markets are following a decline in the US due to correlations, because valuations are inter-correlated across global markets, and due to concerns that the problems of the sub-prime mortgage concerns in the US might increase the credit crunch, which will probably reduce the money in private equity capitals for equities in Asia."
On whether he expects the corrective phase to end, he said, "This is something I would expect. The key factor do drive markets is that earnings growth continue to exceed expectation across the globe. As long as the sub prime mortgage crisis remains contained, we will see further gains in equities."
