Equity Flow Slow Ahead Of Easter Break

• China equities saw modest inflows via the northbound connect on Thursday, with 2.3 billion entering the market. This month, investors acquired nearly 22 billion yuan (equivalent to $3 billion) worth of onshore equities through the links connecting Hong Kong and mainland stock exchanges, marking the second consecutive month of purchases following six months of outflows. Equity markets were higher on Thursday, driven by expectations of further quantitative easing, although analysts doubted the likelihood of massive QE implementation by China. Stronger yuan reference rate and Xi's meeting with US CEOs also influenced market gains, according to analysts. The 5-day average is 0.44 billion, below the 20-day average at 1.10 billion.
• South Korean equities were lower on Thursday, and foreign investor flows were just $8 million. There was little in the way of local market headlines. Investors could be sitting on the sidelines as we head into a break, especially after the market’s recent returns of over 4% for the month and ahead of US data out later today. The local market has seen inflows of 3.3 billion over the past month, while the 5-day average is now $190 million, above the 20-day at $161 million and largely in line with the longer 100-day average at $182 million.
• Taiwan equities continue to benefit from higher global tech and more specifically semiconductor prices. The local market is up 6.88% for the month, although foreign investors have started to sell Taiwan stocks, with $830 million of outflows on Thursday marking the fourth day in a row of net selling. The 5-day average is now $310 million, 20-day average almost now at $3.8 million, while the longer-term 100-day average is $180 million.
• Indonesian equities were slightly lower on Thursday, although bounced straight off the monthly lows for the JCI of 7,250 to close at 7,288. Investors have been selling Indonesian equities as well as bonds recently with rate cuts from BI seen unlikely to come until after the Fed and comments from Waller on Thursday investors may look to continue the trend. The 5-day average is -$20 million, 20-day average is $23 million, slightly higher than the 100-day average at $21 million.

Table 1: EM Asia Equity Flows