Funds shun Asian shares

Funds shun Asian shares

LONDON (Reuters): Asia Pacific fund managers are less bullish about the outlook for Asian shares, according to a monthly Merrill Lynch survey released yesterday.

Bears on the Indonesian market outnumber bulls by 50 percent, while bears on Malaysia hit 64 percent, according to the survey.

"Reduced optimism about the Chinese economy and renewed fears over Asian currency weakness could be to blame," Merrill Lynch said in a statement.

Enthusiasm for China shares is diminishing, with bulls outnumbering bears by 14 percent, down from 48 percent a month ago.

A growing minority of fund managers are concerned about the Chinese yuan, with 14 percent expecting it to depreciate sharply against the U.S. dollar in 1998, up from six percent last month.

Buying interest in every Asian market has declined in the last month, except Australia and India, which are often viewed by fund managers as cash proxies, according to the survey.