Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about $68 billion, comments on Asian stocks.
Asia’s regional equity gauge swung between gains and losses as stronger economic growth in Japan and Singapore and indications the Federal Reserve will act to shore up the U.S. recovery tempered concern that Greece’s economic crisis is worsening.
On market outlook:
“We may see a huge buy-back if we see some end to Europe’s political turmoil and people realize that stocks in Asia are cheap given their strong economies,”
“Stocks have fallen too quickly recently. They’re at a level we should buy once we see some signs of improvement in Europe.”
“For European investors, Asian stocks are merely an alternative, a kind of seasoning that you would add as an extra. If they were to take away risks, it would start from here.”
On Asian economies:
“Strong economic growth in Asia may not mean much if Europe’s situation continues to deteriorate.”
“Asian economies aren’t that bad right now. But considering the political risks in Europe, especially those which you can’t predict or control, there’s a lot of worry about the future.”
On impact of Greece’s political impasse, debt crisis on Asian markets:
“Investors are increasingly becoming risk-off, converting their investments into cash or taking refuge in safer assets like bonds, especially of countries that are viewed as safe havens.”
“There are a lot of uncertainties surrounding Europe, with Greece being the center of it all. If this was about the macro economy, economists could at least come up with some forecasts. But with political issues like these, you really can’t predict what will happen. It’s something you can’t foresee or control, and you really need to take into account the possible risks. There’s a global move towards avoiding risks.”
“The Greece problem may not have a direct impact on Asian companies. But it’s Europe’s problem as a whole, impacting the region’s economies and currency, and that’s something Asian companies need to worry about.”
On the Federal Reserve:
“The Fed is giving a signal to the market that there’s no need for panic, by assuring it will do something before things get really bad.”