Franklin Templeton doubts Greece aid package will help global equities

Asian stock markets have recorded a relatively minor bounce following the announcement of the European €750 billion bailout package, as the region's investors realise the package just "moves debt around", says Alan Chua, portfolio manager for global equity management at Franklin Templeton in Singapore.

He echoes the view of many in the market by saying the package does not address the root cause of the problem. "Guaranteeing a bailout package for weaker countries simply means increasing debt in other countries," says Chua, and does not deal with the problem of profligacy.

"There will have to be a clamp down [on fiscal deficits] at some point and that will cause a lot of pain," he adds. "Until you get a proper resolution, a sustained rally is unlikely."