Emerging Asian equities see first monthly inflows in seven months

Brian Leclere - 03 August 2022 - APP Finance MARKET_WATCH

Emerging Asian equities ex-China saw monthly foreign inflows in July, after six months of capital withdrawals, as investors bet that the size of U.S. interest rate hikes would ease, and that a recent drop in commodity prices would temper surging inflation.

Riskier assets were bolstered after the U.S. Federal Reserve’s comments that “at some point” it would be appropriate to slow down its policy tightening.

Data from stock exchanges in South Korea, India, Taiwan, the Philippines, Vietnam, Indonesia and Thailand showed that foreigners purchased equities worth a net $1.23 billion, their first monthly net buying since Dec 2021.

 

Monthly foreign investment flows in Asian equities: https://fingfx.thomsonreuters.com/gfx/mkt/xmvjomgzepr/Monthly%20foreign%20investment%20flows%20in%20Asian%20equities.jpg

 

 

“Despite a 75 bps rate hike, Fed Chair Powell’s repeated reference to a ‘soft landing’ quelled the recession fears somewhat,” said Manishi Raychaudhuri, head of APAC equity research at BNP Paribas (OTC:BNPQY).

“However, we have to remain cautious about the near term when it comes to capital flows as the Fed has just commenced QT (quantitative tightening to reduce its balance sheet) and the pace of QT shall accelerate significantly till September.”

South Korean equities attracted the most inflows in the region, luring $1.37 billion, the biggest foreign buying since December.

Meanwhile, Indian stocks obtained $618 million in their first monthly foreign inflow since September as oil prices dropped, easing some concerns over its trade deficit.

 

Thai equities also saw some purchases by foreigners last month, which amounted to a net $125 million.

According to Jun Rong Yeap, a market strategist at IG, Asian equities could attract more foreign inflows until the Fed’s Jackson Hole Symposium in late August, when investors could gain more clarity on the Fed’s policy moves. “Until then, emerging Asian ex-China equities could potentially tap on the improved risk environment.”

 

 

Emerging Asian equities see first monthly inflows in seven months
 

Source: Emerging Asian equities see first monthly inflows in seven months

    Join our 60k+
    tribe of Akters

    Have any questions?

    We're here to help.

    Learn more

    About the AKTIO coin

    AKTIO is now live!

    Learn more about the AKTIO coin

    What’s new in the App?

    We’re adding new features

    Find out more about the App

    Customer support

    support@akt.io

    +353 1 574 7382

    Opening hours:

    Monday to Friday: 8am - 7pm CET

    Company

    About

    AKTIO coin

    Careers

    News

    Learn

    Blog

    AKT Academy

    Help

    FAQ

    System Status

    Follow our latest news

    Automata Pay

    65-66 Warwick House 4th

    Floor, Queen Street, London

    England, EC4R 1EB

    Automata ICO Ltd

    3rd Floor Ormond Building,

    31-36 Ormond Quay Upper,

    Dublin 7, D07 Ee37

    Automata Pay Europe Ltd

    3rd Floor Ormond Building,

    31-36 Ormond Quay Upper,

    Dublin 7, D07 Ee37

    Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

    Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

    Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.