Lim Say Boon, Chief Investment Strategist, Group Wealth Management Standard Chartered Bank while answering a query told CNBC-TV18 that there is certain degree of economic decoupling between the US economy and the Asian economies ex-Japan but it does not mean decoupling in the financial markets.
Excerpts from CNBC-TV18's exclusive interview with Lim Say Boon:
Q: What’s your sense the entire decoupling theory stands completely negated at this point of, time how bad it could get following US?
A: There has been an absolute carnage and we have been warning of this since early last week and our exact words were that this was a prefect storm brewing and the perfect storm was here, its real and its now.
n terms of the decoupling story economically one does have certain degree of decoupling between the US economy and the Asian economies ex-Japan but it does not mean decoupling in the financial markets. There is economic decoupling but there is also financial market contingent and what we are going through right now is financial market contingent.
Q: At what levels do you see buying opportunities emerge for investors in Asia?
A:I was asked all of yesterday when would be a good time to be bargain hunting and our advice to our clients is that stay out of the market at this moment, there is more downside yet in store. It looks like another 10-15% downside on what we saw as close of yesterday’s trade is possible. We just went through the numbers, the numbers are looking pretty ugly as we speak and the markets are down another 3-4-5% right through out the Asian region depending on which markets you are dealing with.
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