Equity Flows Positive But Losing Momentum

• China equities continue to see inflows, with another 1.56 billion yuan coming in via the northbound connect. Equity markets were lower on Wednesday, just off their recent highs. There have been few major market-wide headlines in the past few days, but there have been some headlines around China property, with Country Garden and China Vanke being the most recent names to find themselves in trouble. The 5-day average now sits at 3.98 billion, comfortably above the 20-day average at 2.47 billion and the longer-term 100-day trend of just 0.07 billion yuan.
• South Korean equities made new highs on Wednesday, now back at levels from August 2022. South Korea had unemployment data out on Wednesday, coming in below expectations at 2.6% versus 3.0%. Equity flows were positive on Wednesday; however, momentum is really slowing down. The 5-day average is now -$41 million versus the 20-day average at $98 million.
• Taiwan equities have surged recently, benefiting from the move higher in global semiconductor prices. The Taiex hit new all-time highs on Wednesday and is now up 10.35% for the month. Securities regulators are looking into ways to implement measures to prevent irrational buying. There is strong equity flow momentum, with the 5-day average at $431 million versus the 20-day average at $282 million.
• Thailand equities saw an inflow on Wednesday and now sit just off year-to-date lows. The SET has bounced off the 1350 level three times since breaking below 1450 in October and now trades in the middle of the range. The 5-day average is -$13 million versus the 20-day average at -$7 million.
• Indonesian equities saw their largest inflow since April 2022 on Wednesday, partly due to the prior two days of the market being closed for public holidays. Consumer Confidence was out, showing a slight decrease from the month prior. The 5-day average is now $103 million versus the 20-day average at $42 million.

Table 1: EM Asia Equity Flows