Volatility in the Asian markets to remain: Subodh Kumar

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Asian markets have been a bit volatile but Hang Seng has joined the part giving a boost to Asian markets. Subodh Kumar, Chief Investment Strategist at Subodh Kumar & Associates said, "There is enough information to suggest that markets have been bottoming out last week but looking forward the focus will be on global growth, and further volatility in the markets may remain.

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

Q: Another bailout package you have sorts by the Chinese Government and this time around we are looking at Taiwan cutting rates. Does it seem like Asia is now going to slowly react to what is happening globally in terms of the market turmoil?

A: Asia has been reacting/ Last week the focus was very much on weakness and the International Monetary Fund (IMF) came out with their numbers looking for only 2% growth for the global economies next year in 2009. So the focus had shifted towards the economy and what the government's do in addition to rate cuts. The Chinese stimulus package should be looked at more in terms of fiscal stimulus from an infrastructure spending point of view rather than just the bailout and we will see packages from elsewhere as well.

As a sum total, I would say there is enough information to suggest that markets have been bottoming out last week but when we look forward the focus will be on global growth, and further volatility in the markets may remain. So quality stocks will continue to be the focus.

Q: Post this bailout package, can we see another round of big spending or interest rate cuts from another economies Taiwan started it, can we see another round coming in?

A: In the Sao Paulo meeting of the G20 Finance Ministers and Central Bankers, the President of the European Central Bank indicated that there will be more rate cuts coming from him in December. Clearly in North America from the Fed the indications have been that they are willing to accommodate further in terms of rate cuts. That is a separate issue from the fiscal stimulus and I think that the size of the Chinese package is just one indicator. I believe that Korea had announced one as well, and those are smaller ones but the next series may very well come from Europe and certainly from the indications that President Elect Barack Obama has indicated from the US next year.