Asia-Pacific equity risk premium offers upside: Nomura

Here are experts equity calls for the day on how the markets are expected to trade:

Michael Kurtz, Nomura: Asian equities declined last week as investor sentiment weakened amid uncertainty about the US and global economic outlook. However, stronger Asia-wide growth in the second half, led by China, should limit the downside for the region. The Asia-Pacific equity risk premium offers substantial upside in our view. Michael Hartnett, BofA ML: Investor sentiment slipped further despite a rally in equities and commodities since the June survey. Pessimism was sharpened by a big drop in corporate profit expectations and fading hopes for QE3 in the third quarter. Capitulation out of commodities into "safe assets" is visible but high cash levels continue, as traders look for sharp summer declines in risk assets.