* Sceptical of efficacy of extreme policy responses

* Anticipates recession for Chinese economy

* Expects demand for Japanese government bonds to wane (Recasts with comments)

By Parvathy Ullatil

HONG KONG, Nov 10 (Reuters) - Albert Edwards, an analyst at French bank Societe Generale (SOGN.PA: Quote, Profile, Research) who correctly predicted the Asian financial crisis, sees global equity markets at a new low and chances of another global recession in 2010.

Edwards, a prominent equities bear and a long-term critic of the policies of Western central banks, is sceptical of popular opinion that extreme policy responses will safeguard the West against a repeat of Japan's 'lost decade' of the 1990's.

"People should question the happy clappy nonsense from sellside analysts," London-based Edwards, a global strategist with SocGen's Corporate & Investment Banking group, told a media briefing.

"We are not saying that people should not participate in the rallies -- that will get you fired as a fund manager -- but they should not become too convinced of the recovery," he said.

Edwards is more worried about Japan in the near term as he expects the world's second-largest economy to run into difficulty funding itself next year as demand for Japanese government bonds wane and bond yields rise further.