Asian Equities See Foreign Investors Sell

• China equities reversed their large outflow from Friday with a 8.1b yuan inflow via the northbound connect, this could be linked to an announcement late Friday by China's State Council where they released new guidelines aimed at tightening stock listing criteria, improving corporate governance, and cracking down on illegal share sales in efforts to bolster the equity market. China Mainland equities significantly out-performed Hong Kong Equities with the CSI300 up 2.11% vs HS China Enterprise Index down 0.39%. the 5-day average is now -0.06b vs the 20-day at 0.43b and the 100-day at 0.41b yuan.
• Taiwan equities saw another day of outflows with a -$962m leaving the market marking the third straight day of selling by foreigners for a total of about $1.5b. The Taiex was down 1.38% on Monday, with the Israel and Iran conflict seen as a major driver of the move, and also failed to hold above 20,800 last week so a small correction could be in play before retesting those levels. The 5-day average is now $177m, vs the 20-day at -$268m both well below the longer term trend of $154m
• South Korea equities were slightly lower on Monday, although out-performed the majority of markets in the region. The market opened lower down about 1.5% earlier before simmering tensions in the middle east help push the market off it's lows, although the KRW and other Asian currencies hit cycle lower. Selling by foreign investors increased with a $221 outflow, taking the 5-day average to $156m, the 20-day average to $303m and the 100-day average to $186m.
• Philippines equities broke below the 6,800 mark Apr 5th, a level that had acted at support for the prior month or so, the PSEi is now off 7.13% from its highs made on Apr 2nd, and broke through the support zone of 6,600 on Monday. Equity flows have been negative for 7 straight days for a total of -$66m. The 5-day average is -$9m, the 20-day average is -$6.75m, while the $1.66m.
• India saw the largest outflow since Jan 17th and just the second largest outflow since June 2022 on Friday, the move could be related to, two failed attempts to break 22,800 on Tuesday and Thursday, with the Nifity 50 now off 2.16% since. Indian CPI also missed estimates late Friday coming in at 4.85% vs 4.90% expected. The 5-day average is now $114m vs the 20-day average at $110m both above the 100-day average of $90m

Table 1: EM Asia Equity Flows