ASIAN MARKETS: J.P.Morgan note "ASEAN equity funds...>

ASIAN MARKETS: J.P.Morgan note "ASEAN equity funds have witnessed cumulative net

outflows of US$12.4bn YtD. Equities have underperformed the broader markets YtD

& continue to remain under pressure on account of slower growth, currency

weakness, 1st-order impact of COVID-19 on the service sector & idiosyncratic

factors. Flows have been -ve in June as mkts price in risk of a 2nd wave:

- Thailand: -$737mn, Malaysia: -$679mn, Indonesia: -$318mn Philippines: -$190mn.

Vietnam, on the other hand, had inflows of $610mn, largely on the back of KKR

led consortium's acquisition of minority stake in Vinhomes. As per our latest EM

fund manager positioning survey, amongst the smaller markets (EMs that are less

than 2% of the benchmark), Indonesia is the only marginal net OW markets.

Thailand & Malaysia continue to see massive net selling. Since Aug '19 investors

have net sold $10.1bn & $5.3bn in Thai & Malaysian equities respectively.

- Foreign investors turned net buyers of Asian bonds in May & June. Indonesia

saw $612mn & $212mn of buying in May & June respectively. Foreign ownership for

INDOGBs has come down to 31% from 39% at end '19. In Thailand, investors sold

$284mn in May & bought $1.1bn in June (MtD), foreign ownership near record low."