LONDON, March 5 (Reuters) - Italy's election outcome could lead to pressure on Italian and other southern euro zone bonds but should not be a "sustained negative" for the euro or regional stock markets, asset manager BlackRock said on Monday.
Richard Turnill, global chief investment strategist at the world's largest asset manager, noted that Italy's strengthening economy, with real GDP growth of 1.5 percent likely in 2018-2019, should cushion some of the hit from politics.
Sunday's election delivered a hung parliament in Italy with a strong showing by eurosceptic, anti-immigrant parties.
Another positive was Germany's progress on the weekend towards forming a coalition government, Turnill added.
"We see scope for pressure on Italian and peripheral euro zone government bonds but don't see this as a sustained negative for the euro or regional equities," Turnill told clients.
Italian and other southern European bond yields rose on Monday after the election, and Italian stocks fell to six-month lows.
Reporting by Sujata Rao; Editing by Dhara Ranasinghe