Asian markets opening in the red for a second day over tariffs

CGTN Europe

CGTN Europe spoke to Naeem Aslam, Chief Investment Officer at Zaye Capital Markets.

Transcript

00:00Neem Aslam is Chief Investment Officer at Zaire Capital Markets.

00:04Welcome to the programme.

00:05Well, it looks as if Asian markets opening in the red for a second day on tariffs.

00:12What's your assessment of where we are so far?

00:16Sure, thanks for having me as always.

00:18I think there is still further room to the downside when it comes to these particular

00:24markets, whether we are talking about Asian markets, European markets or the US markets.

00:29And I'm saying this despite the fact that we have seen a very, very healthy correction.

00:35In fact, some of the indices in these particular markets across these three regions, they have

00:43gone into very near enough to their bear market territory.

00:47But the fact is that this is a game that every single country leader is willing to play.

00:54It is a tit for tat game.

00:55And until and unless we see some sort of elasticity on either side, I don't see a

01:02bottom yet in the market.

01:04I think there is a further downside.

01:06Yes, weekends would be very important, any upcoming weekends, because this is when you're

01:12going to see a major headlines.

01:14So going into Monday, we could potentially see a huge gap to the upside or further gap

01:19to the downside, which only time will tell.

01:22But it is the elasticity of the relationship.

01:25Who's going to give up on in terms of the ego?

01:28And they're going to say, OK, here it is.

01:31Let's come to the table.

01:32Talk sense.

01:33Move forward.

01:35How freaked are investors, do you think?

01:38How unnerved are they?

01:41Well, I think from investment perspective, you are looking two different set of investors.

01:46Number one, investors who are looking at the markets and thinking about the valuations

01:51been so rich across the globe, not only in Asia or in Europe or in the United States.

01:58And I'm not specifically discussing any particular sector, especially the max seven or the tech

02:04sector, the AI boom, which was a very, very rich in terms of evaluation.

02:08So those pool of investors are looking at it and then rubbing their hands and thinking,

02:13this is a great opportunity because now markets have retraced more than 20 percent in terms

02:19of the Nasdaq, in terms of the Russell.

02:21We had more than we are nearly over 30 percent and over in China and in Hong Kong, it is

02:26even more worse.

02:28But then smart money, the other pool of investors sitting on the other side thinking, OK, if

02:33these tariffs are going to become a reality around those particular key dates, which are

02:38going to be kicking in next week, what does that mean in terms of production?

02:43If you are pushing companies to come to the United States, it is not going to happen overnight.

02:49Who's going to take the pain?

02:51At what cost are consumers ready?

02:55And what does that mean for the earning season?

02:58They are looking at these particular questions and the answer that they are looking at for

03:03these particular questions are not very optimistic.

03:05Naeem Aslam, thank you very much for joining us.

03:07Good to see you.

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