On Tuesday TD Securities noted that............>

ASIA: On Tuesday TD Securities noted that "following a tumultuous few months

Asian portfolio flows are showing signs of stability, albeit still someway off

last year's inflows. We calculate that aggregate Asian equity outflows total

$23.8n year to date while bond inflows total $34.8bn (ex-Korea $1.2bn). Both our

bond and equity bond flow momentum measures have turned positive. Stronger

portfolio inflows correspond with an improvement in local bond markets, equity

and FX performance. After suffering from significant bleeding over recent months

Taiwan, South Korea and to a lesser extent India, have seen a recent strong

turnaround in equity flows. Although foreign bond flows to Korea have remained

strong, Asian bond inflows ex-Korea have only recently turned positive.

Indonesia and India will find comfort in an improved portfolio flow picture

given their current account deficits. Indonesia's foreign bond ownership is high

at close to 38% and the IDR should benefit from the fact that bond inflows to

the country have finally turned positive ytd. Although ytd bond and equity flows

to India are still negative they are improving, which ought to give some comfort

to the INR."