Fund managers shift preference to south America as disease spreads in Asia
The Sars (severe acute respiratory syndrome) virus is beginning to affect capital inflows into Asian markets including India.
Fund managers seem to be on an exit from these markets. An indication of this came on Friday when the stock markets, currencies and interest rates dipped across Asia on fears that the pandemic could spur a protracted economic slide.
So far it was assumed that only travel and related segments such as the hospitality industry, tourism and airlines would be affected.
Sources said fund managers looking after allocation in these regions were not very keen on remaining invested if the economic climate becomes vitiated in these markets.
So far in India only around five confirmed cases of Sars have been detected, but there are apprehensions that once it catches on it could spread.
On Friday, the Taiwan weighted index fell 3.23 per cent, the Hong Kong Hang Seng hit a 54-month low in intra-day trades, Japan
