Foreign Investors Buy Asian Equity, SK Benefits From Policy Changes

• China equities were lower on Friday as a raft of disappointing earnings hurt of the recent rally in stocks, while northbound flows were again negative at -3.13b. China EV maker Li Auto was one of the worst performing after it lower guidance. Looking ahead this week eyes will be on China property names after Longfor group also reported poor results. CSI300 has hit key technical resistance, unable to break above the 200-EMA, while the new proposed US bill aimed at banning US mutual funds from purchasing some Chinese Indices has been seen to be weighing on market sentiment. The 5-day average now sits at 1.55 billion yuan, below the 20-day average of 2.27 billion yuan.
• South Korean equities finished Friday lower on as markets took a bit of a break. Foreign investors inflows were again positive with $458m entering the market. Looking ahead this week multiple international financial firms are scheduled to visit SK this week as interest grows in the governments new corporate value-up program. The 5-day average is now $522 million, above the longer-term 20-day average at $153 million and the 100-day average at $172 million.
• Taiwan equities were pushed lower on Friday as regional tech names took a hit. US tech names brushed off the weakness which could support Taiwan semiconductor names today. Foreign investors equity flows were positive on Friday, after two large days of outflows on Tuesday and Wednesday last week. the 5-day average is still negative at -288m, while longer term trends still sit positive with the 20-day at $124m while the 100-day average is $177m
• Thailand equities seen another -$17m of net outflows, the $1b in outflows from earlier in the week did very little to equities prices suggesting it was an international fund leaving the market, while domestic accounts easily absorbed the supply.

Table 1: EM Asia Equity Flows