Asian Equity Flows Mixed As Tech Stocks See Majority Of Inflows

• China equity markets saw another outflow on Wednesday this time 4b yuan, taking the past 5-days to net inflow of 5.4b yuan. Equity markets were weaker again, although major indices still hold onto most of their recent gains and sit in bull market territory. The CSI300 continues to hold above all moving averages, although there seems to be some selling pressure coming through with the 200-day EMA acting as an important support level, the 14-day RSI is dropping although still holds above 50 for the moment, while MACD indictor looks to be turning lower. Looking ahead we have trade balance data on later today with CPI due out over the weekend. Equity flow momentum remains positive although is slowing with the 5-day average now 1.08b still, vs the 20-day average at 0.65b and the 100-day average at 0.67b.
• South Korean equities continue to tick higher, with the likes of Samsung and SK Hynix leading markets higher, while foreign investors have pumped about $2b into the Kospi over the past two weeks. The Kospi is now up 7.50% from lows on Apr 19th and sits well above all moving average, while the RSI and MADC indictors show buyers are well in control, we currently trade just 1.25% off yearly highs. The 5-day average is $264m, comfortably above the 20-day average at $92m and while largely inline with the 100-day average at $186m.
• Taiwan equities were slightly higher on Wednesday with a $132m inflow as foreign investors continue to pump cash into semiconductor names, especially TSMC and Hon Hai. Wednesday also saw trade balance data out which showed the exports to the US surge and shipments to China falling, while the trade surplus narrowed to $6.46b from $8.67b in March. The Taiex is up 7.27% from recent lows and has seen $2.7b on inflows over that period. The 5-day average is now $214m well above the 20-day average of -$182m and the 100-day average at $65m.
• Philippines equities have now marked 6 straight days of outflows, for a total net outflow of $331m. Wednesday we had trade balance data which showed the deficit narrowing to -$3181m from a revised -$3663m in Feb, while the unemployment rate ticked higher to 3.9% from 3.5%.The PSEi traded higher on Wednesday after tapping the 200-day EMA and reversing, finishing the session back above both the 20 & 100-day EMAs. The 5-day average is -$9m, the 20-day average is -$22.4m, while the 100-day average is -$3.1m.
• Indonesian equities have now marked 23 of the past 25 days of outflows and now takes the total flows over that period to -$1.66B. The JCI has largely been able to hold above the 200-day EMA, however on Wednesday close below it, which could signal further weakness. The 5-day average is now -$80m, the 20-day average is -$72m, while the longer term 100-day average is $6m.

Table 1: EM Asia Equity Flows