Investors Dump Asian Equities,Middle East Tension Rise, Tech Slides

• China equities marked five of the past six days of outflows on Friday for a total outflow of 14.8b yuan. Local markets were all in the red on Friday, as Israel launched an attack on Iran, the CSI300 again tested the 3600 and 200-day EMA levels on Thursday but again failed to break above it. Flow momentum continues to track into the negative territory with the 5-day average now -1.33b, 20-day average at -1.36b and the longer term 100-day average now 0.35B yuan.
• Taiwan equities have marked the seventh straight day and the third largest daily outflow on record as foreign investors sell a total of $6.4b for that period. TSMC forecast, Israel/Iran conflict topped with consistent warnings from Taiwanese officials about inflated equity values have all contributed to the outflows. The 5-day average is now -$1.17b, vs the 20-day at -$381m well below the longer-term trend of $71m, although the longer-term trend is quickly losing momentum.
• South Korea equities saw their largest outflow in a month as $509m left the market and marked the five of the past six trading days of net outflows. Like other markets, the move was largely driven by a sell-off in risk assets as tensions in Israel and Iran grew. The Kospi is off 6.75% from recent highs, however the index again bounced off the 200-day EMA. The 5-day average is now -$114m, the 20-day average to $178m and the 100-day average to $176m.
• Philippines equities continue to see outflows with $11.5m leaving the market on Friday making it 11 straight days of outflows for a total of $119m. Equity prices have fell 1.23% on Friday and the PSEi has now closed the week below the 200-day EMA at 6,443. The 5-day average is -$11.5m, the 20-day average is -$6.48m, while the 100-day average continues to edge lower now at $1.11m.
• Indonesia had a $51m outflow on Friday taking it to a 13-day streak of net selling by foreign investors for a total of $985m. The JCI traded below the 200-day EMA on Friday and closed the week just below it at 7,087. The 5-day average is now -$103m, the 20-day average is -$41m, while the longer term 100-day average is still positive at $14.7m.

Table 1: EM Asia Equity Flows