Mixed End For April Offshore Flows, Trend Still Positive For China

In the final trading day of April, Asian equity flows were mixed. We saw northbound stock connect outflows from China. Still the trend for the past 5-days remains strong, see the table below.

• The market may also take comfort from details from the Politburo meeting, with efforts to revive demand and address housing market problems key focus points. Note onshore markets are closed today, re-opening next Monday after the Labor day break.
• Even with weakness yesterday in the CSI 300 we are above all key EMAs, and finished April above the 3600 level.
• Elsewhere, trends in the tech sensitive markets of South Korea and Taiwan remained positive, albeit more modest compared to previous session. The 5-day trends for both markets remains firm.
• The higher yield backdrop in Tuesday US trade (post firmer data) weighed on tech equity sentiment. We also have the Fed decision later on Wednesday.
• Indonesian flows were more positive yesterday, but the trend has been negative for the past week. Finally, we saw a large outflow from the Philippines to end the month. Philippine equities fell 1% yesterday.

Source: MNI - Market News/Bloomberg