China Continue To See Inflows, Investors Dump Indonesian Stocks

• China equity markets returned from their 3-day break with a strong 9.3b yuan inflow via the northbound connect. Small-cap and growth indices were the top performing, while the CSI300 is now comfortably trading above all major EMAs. Markets are being well supported by Beijing’s supportive policy stance. Looking ahead trade balance data on Thursday will be the main focus, with CPI due out over the weekend. Equity flow momentum continues to grow with the 5-day average now 6.9b well above the 20-day average at 0.76b and the 100-day average at 0.77b.
• Taiwan equities were higher on Monday with another strong $688m inflow, as foreign investors continue to pump cash into semiconductor names, especially TSMC and Hon Hai. Later today we have CPI data with consensus at 2.20% up from 2.14% in March. The Taiex is up 6.77% from recent lows and has seen $2.23b on inflows over that period, although that is still less than the $2.7b outflow from Apr 19th and the cycle lows. The 5-day average is now $356m well above the 20-day average of -$202m and the 100-day average at $58m.
• Philippines equities have now marked 4 straight days of outflows, for a total net outflow of $316m. After a strong bounce off recent lows the PSEi has begun to lose steam again, and now tests the 20 & 100-day EMAs. CPI missed consensus coming in at 3.8% vs 4.1% expected, and slightly higher than the 3.7% in March. The 5-day average is -$59m, the 20-day average is -$22.5m, while the 100-day average continues to edge lower now at -$2.9m.
• Indonesian equities have now marked 21 of 23 days of outflows and now takes the total flows from the past 22-days to -$1.53B. The JCI has traded largely rangebound since foreign investors started this period of selling, implying domestic buyers are so far buyers of local equities. The 5-day average is now -$53m, the 20-day average is -$71m, while the longer term 100-day average is $8m.
• Malaysian equities continue to make new all-time highs and trade well above all major EMAs, the RSI is now in overbought territory, while foreign investors have been buying over the short term with the 5-day average now $48m, vs the 20-day at -$10m and the 100-day average at -$3.3m

Table 1: EM Asia Equity Flows