Indian mkts are due for a correction: DMG & Partners

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Indian mkts are due for a correction: DMG & Partners

Asian shares were a bit volatile today. Things are looking mixed in Asian markets. Shanghai started off in the green but slide off into the red, it is getting a little volatile. The Nikkei has been softer, and Hang Seng, Taiwan, and Korea are holding good gains for themselves.

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Asian shares were a bit volatile today. Things are looking mixed in Asian markets . Shanghai started off in the green but slide off into the red, it is getting a little volatile. The Nikkei has been softer, and Hang Seng, Taiwan, and Korea are holding good gains for themselves.

Japan's Nikkei plunged 0.22%, or 38.2 points, at 17,251.10. However, Hong Kong's Hang Seng gained 1.01%, or 230 points, at 22,970.70 while the Taiwan Weighted surged 2.1%, or 190.53 points, at 9,263.10. Singapore's Straits Times advanced 0.84%, or 29.51 points, at 3,555.80 while South Korea's Seoul Composite rose 0.78%, or 14.94 points, at 1,921.65.

Gabriel Yap , Senior Dealing Director, DMG & Partners Securities , sees more funds being diverted to Asian markets than the US.

On whether US Wall Street cues are still hovering over Asian markets, he said, "I think so. Asia is increasingly showing the decoupling effect from the US market performances. In the case of the recent decline in Wall Street, the correlation is still there. But this would be a moment in time where more foreign investors would stay focused to the earnings growth of their respective markets and the fact is there for all to see. Asian markets are powered by the Indian, Chinese and Singapore economy and stock markets will, in terms of EPS, grow faster than US markets for this current year. At the same time, their P/E's and valuations on the price-to-book basis are probably more comparable and favourable as compared to Asian markets. We would actually increasingly see more funds diverted to this part of the world than the US.

Speaking on the volatility in Shanghai , he said, "In the Shanghai markets, you are increasingly seeing more funds being diverted towards investment funds, as opposed to retail investors buying individual stocks. The amount of funds raised by Chinese markets has increased by 1 trillion yen in the last six months and this has increased close to 2 trillion yen for investment right now. If this pace continues, this will continue to increase evaluations for the Shanghai market."