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00:00WHEN YOU SAY DE-RISKING, DOES THAT MEAN YOU ARE MAINTAINING A DEFENSIVE STANCE? WHAT IS HELPING YOU DO THAT? > > YES. GLOBALLY MAINTAINING A DEFENSIVE STANCE. WE SEE THE VALUATION IS NOWHERE NEAR ATTRACTIVE AND YOU HAVE LEADING INDICATORS LIKE CREDIT, LIQUIDITY, GROWTH THAT ARE NOT INDICATIVE THAT WE WANT TO TAKE MORE RISK ON THE MARKET. SO THAT MEANS RESOURCE AND INCOME WILL BE STRATEGIES IN THE GLOBAL EQUITY MARKET. SHERY: ANY OF THE TRADING IN CHINA? WE HEAR ABOUT MEASURES FROM POLICYMAKERS TO SUPPORT THE ECONOMY. > > YES. WE HAVE VIOLATION ASSETS VERY DEPRESSED IN THE WORLD. THE YEN, FOR EXAMPLE. BUT WE ALSO HAVE IT IN THE EQUITY MARKET AND IT IS IN THE OFFSHORE EQUITY MARKET. SO THIS IS AT THE LOWEST EVER. SO THE HONG KONG MARKET HAS NEVER BEEN [INDISCERNIBLE] SO THE STRENGTH OF POLICY RESPONSE TO BOOST GROWTH IN THE SECOND HALF OF THE YEAR, WHICH WILL BE KEY, OR YOU COULD SEE, GIVEN THE LOW VIOLATION, SOME SIGNIFICANT -- ONCE THEN THE MARKET RESPONSE WILL BE ENOUGH TO LIFT GROWTH. HAIDI: THERE ARE JITTERS IN THE GREEN TRANSITION SPACE. OUR ASSETS LOOKING CHEAPER? > > YES. AMONG THE MARKET, YOU HAVE THE GREEN TRANSITION BUT CHINA IS AN INTERESTING EXAMPLE BECAUSE THEY ARE DOMINATING THE SOLAR INDUSTRY ON SUPPLY CHAIN AND SOME VALUATION WILL BECOME DEFAULT BOWL. -- DEFAULTABLE. SO LOOKING AT LONG-TERM INVESTMENT IN WHICH WE REMAIN RATHER BULLISH. HAIDI: A FEW INVESTORS PREFER AUSTRALIA, PARTICULARLY FOLLOWING THE ELECTION. IS THIS A GOOD PLACE TO HEDGE GIVEN THE STAGFLATION FEARS? > > IN THE REGION THERE ARE A NUMBER OF COUNTRIES, AUSTRALIA, INDONESIA, THEY ARE EXPORTERS OF RESOURCE. GDP POSITIVE EXPORT. SO THEY ARE BENEFITING FROM POSITIVE TERMS OF TRADE. AND YOU TEND TO FIND A RATHER GOOD RELATIONSHIP BETWEEN THE EXPORT POSITION AND THAT STOCK MARKET RETURN. SO LOOKING AT THE STRUCTURE OF THE EQUITY MARKET, SOME SEEM TO BE BETTER BULLISH THAN OTHERS. INDONESIA AND AUSTRALIA HAVE MORE [INDISCERNIBLE] SHERY: SOUTH KOREA RELIES AND ALSO HAS CENTRAL BANKS TIGHTENING. > > KOREA IS AN INTERESTING CASE BECAUSE IT IS ONE OF THE MARKETS WHERE YOU START TO SEE SOME INTERESTING VALUATION COME AS WE SEE ON THE OFFSHORE MARKET. [INDISCERNIBLE] BUT AT THE SAME TIME WE HAVE SOME STRONG INDICATIONS THAT THE BANK OF KOREA IS NOT DONE YET. WE STILL HAVE SOME WEAKENING IN THE CURRENCY DRIVEN BY SOME OUTFLOW FROM INVESTORS. SO WE PROBABLY NEED TO BE MORE PATIENT IN THAT MARKET AND ALSO TO SEE BOTTOM ON THE NASDAQ AND SEMI CONDUCTOR INDEX BEFORE GETTING MORE POSITIVE ON KOREA.

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SocGen's Benzimra on Markets and Strategies

Frank Benzimra, Head of Asia Equity Strategy at Societe Generale, discusses markets and strategies. He speaks with Shery Ahn and Haidi Stroud-Watts on "Bloomberg Daybreak: Asia". (Source: Bloomberg)

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