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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (3465)	5/11/1998 8:58:00 AM
From: tom	Read Replies (1) \| Respond to of 9980

Merrill Lynch survey shows Japanese fund managers increasingly optimistic about the economy and strong buyers of domestic equities (unlike foreigners). They are even bullish on the securities sector. Elsewhere they are selling UK and US equities but buying European equities. The percentage of Asia Pacific fund managers that think that the Chinese currency will devalue has risen from 6% in April to 14% in May (although 0% think that the HK$ will go - upside potential??). They absolutely hate the Malaysian and Indonesian stock markets but like Thailand, Korea and India. They have run down the huge levels of cash that they had in December/January and are now letting cash build up again ie the liquidity driven rally of Jan-March is well and truly over. I think that the number concerned about the Chinese currency will continue to climb. Elsewhere in the world, fund managers think that the Euro will be stronger than the US$ (due to tight monetary policy and loose fiscal policy) and twice as many US fund managers expect the Fed's next move to be a hike rather than a cut. (The Merrill Lynch survey is conducted by Gallup and canvass's views of fund managers from around the world)