Asian retail buyers bounce markets but what price IPOs?

Asian equities, hammered in the early part of the week by fears of a US recession, bounced back with a vengeance on Wednesday after the US Federal Reserve’s sudden 75bp rate cut. The Hang Seng rose 10.7% — its best day for almost 10 years. However, institutional investors stayed on the sidelines or kept selling, while retail buyers plunged in. Even with the bounces across Asia Pacific, indices are well down from last Friday and far below 2007’s record highs. EuroWeek on Friday will explore what this combination of fear, volatility and hope means for the equity and equity-linked new issues market.