China Equities Continue To See Inflows, Taiwan Flows Turn Negative

• China equities pushed higher on Tuesday, while flows via northbound connect were again positive with 4.7b yuan flowing in. Market see-sawed on Tuesday, while the CNY pushed higher helping the local market. Corporate earnings are the focus looking ahead with many Chinese Banks and Insurers reporting today, the banks reports will give investors into a look at their exposures to the property space which could set the tone for the coming months. Elsewhere China has Industrial Profit due out shortly. The 5-day average is 1.3b vs the 20-day average at 2.24b both comfortably above the longer term 100-day average.
• South Korean equities surged higher on higher after Micron Technology rallied 6.25%. As the day progressed investors looked to take profit with the Kospi finished the session up about 1%. On the data front Consumer confidence dropped to 100.7 from 101.9, there was little else in the way of market headlines. SK saw $515m of foreign investors inflows on Tuesday with the majority of that heading to tech names. the 5-day average is now $981m vs the 20-day at $178m inline with longer term 100-day average of $181m
• Taiwan equities traded lower on Tuesday with higher tech names not able to keep the market in positive territory, this could have something to do with regulators and government officials warning of inflated equities prices. Taiwan saw their second day in a row of outflows with -$336m leaving the market, taking the 5-day average to -$191m, the 20-day average sits at just $35m well below the longer term 100-day at $176m
• Thailand, Indonesian & Philippines equity markets saw modest foreign investors flows on Tuesday with very little in the way of market headlines, India was back from their public holiday although lag their flows reporting by a day.

Table 1: EM Asia Equity Flows