Foreign Investors Continue To Sell Asian Equities

• South Korean equities followed global markets lower as concerns grow about a slowdown in the US economy, while SK CPI came in below expectations at 0.1% vs 0.2% m/m. Today, we had GDP which missed consensus at 3.3% vs 3.4% y/y. Foreign investors have been better sellers of local stocks recently as they look to take profits, the past 5 sessions have seen an outflow of $1.96b. The 5-day average is now -$392m, well below the 20-day average of -$25m, and the longer term 100-day average at $132m.
• Taiwan equities were lower on Tuesday, we bounced off the 20-day EMA on Friday and have managed to hold above despite heavy selling from foreign investors as the past 5 sessions have seen an outflow of $3.9b. Local price drivers this week will be CPI on Thursday. The 5-day average is now -$787m, well below both the 20-day average at $69m and the 100-day average is $22m.
• Thailand equities were lower again on Tuesday, and the SET is now testing yearly lows made on Apr 19th. Foreign investors have sold equities for the past 9 sessions, with the past 5 seeing a net outflow of $352m. Focus this week will be on CPI due out on Friday. The 5-day average is now -$70m, below both the 20-day average at -$22m and the 100-day average at -$23m.
• Indonesian equities have now marked 9 straight sessions of selling from foreign investors, with the past 5 session seeing a net outflow of $197m. Looking at technicals, the JCI briefly traded above the 200-day on Tuesday, before closing just below it. The 5-day average is now -$39m, below both the 20-day average at -$44m and the 100-day average at -$1.10m.
• Philippines equities also continue to see selling from foreign investors, we have now marked 7 straight days of selling, with the past 5 sessions seeing a total outflow of $148m. The PSEi ended Tuesday back below the 6,400 level and back near ytd lows. The 5-day average is -$29.6m, below the 20-day average at -$8.5m and the 100-day average at -$4.82m.

Table 1: EM Asia Equity Flows