Expect a nice rally for Asian mkts: Tyche Group

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Asian markets have opened sharply higher baring Shanghai after US shares rallied on lower prices boosting confidence in the flagging economy.

Stephen Gollop , CEO at Tyche Group   believes that there is  value in Asian markets. Speaking to CNBC-TV18 he said, "If we see bit of confidence as well then we could see a nice rally. But he also believes that the rally is going to come off along with the US economy.

Excerpts from CNBC-TV18's exclusive interview with Stephen Gollop:

Q: Your take on the Asian markets considering that they have been going higher and higher on concerns fading of sagging US economy. What is your take long-term gain or is it just a short-term blip in the radar?

A: I think there is certainly some value in the market now and if we can just get a bit of confidence to go with that then I think we could see a nice rally. I do believe it is going to come off again with the US economy but there could be a nice rally in between.

Q: The sense on the street seems to be including India as well that these are just short covering rallies and not really fundamental health being depicted there?

A: I agree with that and I think we are seeing short-term rallies but the difference is that this could be a long short-term rally. The values are looking quite attractive and the US is stumbling along, so if that could continue then we could see some nice gains but I am sure we have got some bit more realistically bad news to come back from the US.

Q: Which market are you betting on to lead the pack?

A: I would say Shanghai but it is down 2% this morning. After the Olympics there are concerns that they might bring in some hard measures but I think there are some gains to be made there. Our preference would still be Shanghai despite the reversals in the market this morning.