» Stock fund selling eases in Asia, but outlook shaky

Stock fund selling eases in Asia, but outlook shaky

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Stock fund selling eases in Asia, but outlook shaky

Foreign investors have started cautiously nibbling at beaten-down Indian stocks and could start returning to other Asian markets after having been net sellers over the previous five weeks.

Foreign cash was a major factor in powering last years run towards record highs in Asian share markets, but a global correction that began in the second week of May has prompted many funds to pull cash out of riskier emerging market assets.

In the past six years, sustained outflows from Asia-dedicated funds tended to persist for six to seven weeks. The longest such stretch lasted 11 weeks before ending in October 2001, Citigroup said.

Investors are not panicking. The global economy is still growing, the US is slowing to below-trend growth but we dont think its going into a recession, said Geoff Lewis, head of investment services at JF Asset Management.

More : business.inq7.net

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