Volatility to continue: Opesprime Asst. Mgmt.

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Asian mkt correction to be short-lived: Daiwa Institute Asia as the economies of the future: Tyche Group Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Asian markets mostly rose today, boosted by a higher close onWall Street. Hong Kong's Hang Seng surged 0.43% or 117.39 points at 27,731.82.

Japan's Nikkei gained 0.29% or 43.21 points at 15,197.82. Taiwan's Taiwan Weighted rose 0.29% or 25.83 points at 8,790.65. Singapore's Straits Times was up 0.44% or 15.01 points at 3,455.97. South Korea's Seoul Composite was flat at 1,925.39.

Jay Moghe, C-E-O at Opesprime Asset Management says he expects volatility in Asian markets to continue .

With respect to cues from US markets one should look out if there are any more surprises out of sub prime and in terms of what is actually happening with the US economy, said Moghe.

 

Excerpts from CNBC-TV18's exclusive interview with

 

Q: Unlike the US markets Asian markets are getting choppy this morning?

A: I think volatility is going to be here to stay for a few days. Wall Street was relatively strong on Friday half percent up but this morning there are few worries about the dollar sort of falling, the Persian gulf states are also talking about revaluing their currencies and there is a little bit uncertainty about the dollar but the market is relatively flat this morning, it is flat to up.

 

Q: How do you think the next few weeks will pan out for the Asian region and what are you watching out for in terms of cues from the US markets?

 

A: There are 2-3 things that people should be looking out for; one, is any further surprises out of sub-prime out of the US, I think we have probably seen the worst of it but there may be few more banks coming out with horror stories.

 

Secondly the concern about what's happening in terms of the US economy? - There are clear signs of it slowing down. If the housing is coming off quite considerably and that will lead the Asian markets low because US is a very large proportion of global consumption.