Asian markets to remain under pressure: Asia Pac Asset Mgmt

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS See further slide in crude if $98/bbl breaks: Global Fin Asian mkts will use bad news to sell: Bank Julius Baer A time for selective buying: Principal Global Invst Minor bull market to emerge in Q2, Q3: Asia Pac Asset Mgmt India a favourite amongst Asian mkts: Asia Pac Asset Mgmt. Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

China, Japan, Hong Kong, South Korea all those markets are shut today. Taiwan and Straits Time are down 2% apiece as US stock index futures tumbled after talks to secure the future of Lehman Brothers. James Chirnside, CIO, Asia Pac Asset Mgmt told CNBC-TV18 that from an Asian perspective what is really continuing to drag on markets across the region is continuous outflow of funds back to Europe and back to North America and so Asian markets will remain under pressure.

Excerpts from CNBC-TV18's exclusive interview with James Chirnside:

Q: Do you see the news of Merrill Lynch acting as a multiplier considering that most of the markets are shut and are not getting in many cues, and you also have the US Industrial Production and that European Central Bank (ECB) speech to watch out for Asia?

A: The events over the weekend were critical for market sentiment but from an Asian perspective what is really continuing to drag on markets across the region is continuous outflow of funds back to Europe and back to North America. They are presently running about USD 1.5 billion a week and they have been that way the all year. Until we see stability or a change in direction in that, I think Asian markets unfortunately are going to remain under pressure.

Q: In lieu of that do you think most markets in Asia may actually see new lows as well?

A: I think many markets across will see new lows between now and the end of fourth quarter or the end of calendar year. I personally expect between now and then we will begin to see some stability in the financial system which will lead to more stability in flows to Asia particularly and we could actually see a rally and that is what I am anticipating.

For more Mutual Fund Interviews click here