-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessCan EM Asia Offshore Equity Outflows Recover?
Net equity outflows on the part of offshore investors continue to be a feature for EM Asia markets. However, there is now a reasonable wedge between these trends and the rebound in equity flow momentum for China markets seen over the past month.
- Net outflows for the past week were strongest in India, although this is only data up to last Thursday (as the data is released with a lag). Next was South Korea and Taiwan. All other markets recorded net outflows, albeit in much smaller magnitudes in absolute terms.
- For the past month, net outflows have also been recorded in every market, except for Indonesia.
Table 1: Net Equity Flows For EM Asia Economies
Source: MNI - Market News/Bloomberg
- Still, last week saw a reduced pace of net outflows compared with the previous week. In the week ending June 17th, we saw larger net outflows for all markets except Indonesia.
- The trend improvement in net inflow momentum for China equities suggests we can see an improved picture for the rest of EM Asia. The chart below plots the rolling monthly sum of net inflows for China via the stock connect schemes, against the aggregate sum of net inflows for the rest of EM Asia (namely - South Korea, India, Taiwan, Thailand Indonesia, Philippines and Malaysia).
- The two series share a reasonable correlation over the medium term. China inflows have been buoyed by a sense of easier policy settings, particularly compared to the major developed economies, coming out of Covid lockdowns, which should improve data flow and potentially less regulatory burden for tech sector.
- A better macro backdrop for China should aid inflow momentum into regional equities, all else equal. Of course, other factors e.g. a moderation in Fed tightening expectations and lower commodity prices, can also help.
- There is likely to be limits on how far equity flow sentiment can stabilise, with the threat of a US/global recession continuing to cast a shadow. However, a short term improvement in the flow picture can have positive flow-on effects to local equities and FX performance.
Fig 1: Net Equity Flows - China & The Rest Of EM Asia (Rolling Monthly Sums)
Source: MNI - Market News/Bloomberg
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.