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.