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Net Equity Outflows Extend

ASIA FX

Offshore investors remain net sellers of equites in EM Asia markets.

  • Net equity outflows continue from major EM Asia economies, see the table below. India and Taiwan have seen the strongest outflow momentum, in absolute terms. South Korea follows, while the smaller markets show the same trends.

Table 1: Net Equity Flows For EM Asia Markets

USDmnPast week YTD
South Korea-615-12076
Taiwan-1466-27868
India-1442-18351
Indonesia-1784834
Thailand-723604
Philippines-101288

Source: MNI - Market News/Bloomberg


The pace of outflows still enjoys a reasonable correlation with relative FX performance, see the scatter plot below. Asian FX has enjoyed a modest recovery through the afternoon session today. Any sustained improvement is likely to require both stabilizing equity market sentiment and improved flow trends from an offshore investor standpoint.


Fig 1: Net equity flows and FX performance - past week

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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