Marco Li, Hong Kong-based portfolio manager at Manulife Asset Management, which oversees $238 billion globally, comments on the outlook for Hong Kong stocks in the wake of an outbreak of a new strain of deadly bird flu in China.
“It’s tough because in investors’ minds a lot of people can remember SARS in 2003. There’s a bit of fear from what potentially can happen, especially in Hong Kong, because they do remember the magnitude of it.
‘‘Friday was clearly a bit of a panic sell, but it’s still early to tell if the decline was premature.
‘‘Some was trigger-happy-type of selling and you’ll get some fundamental buying support to some of the overreactions.
‘‘There’s going to be near-term pressure no matter how you cut it. You have this overhang now, and until you get clarity, people will see that as a potential risk for further exacerbation.
‘‘With some of the yen devaluing -- there’s a liquidity chasing that particular market so it diverts some of the attention away from North Asia as well as ASEAN. It creates a new liquidity shift.
‘‘In any type of market correction, you want to stay with the quality names that have liquidity to give you flexibility as an investor. There are longer-term inflation concerns, and equities are still the place to be.’’
To contact the editor responsible for this story: Nick Gentle at firstname.lastname@example.org.