Calmer voices emerge amid market carnage

Singapore

ASIAN stocks took another beating on Thursday after US stocks fell on Wednesday night. Hong Kong's Hang Seng Index fell below book value for the first time since the Asian financial crisis; China's Shanghai Composite fell through the 2,900-point barrier.

Observers say forced selling by oil producers' sovereign wealth funds, along with unwinding of various trades, could be behind the continuous bleeding.

However, the nub of the matter is more a lack of confidence than a looming recession, some say. Low oil prices should be a boon, not a bane.

A note from institutional asset manager Principal Global Investors said: "While investors are focused on disruption from potential defaults by energy and materials companies, they are missing the huge boost to household income around the world from lower energy and food bills. Businesses are also getting the bon…