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Weekly Fund Flow Tracker
Buyers back in force across Asia
Local exchange data: Rebound picking up steam
Asia ex-Japan weekly foreign buying reaches post-April high... For the
week ending Wednesday, July 6, aggregate foreign net-purchase of equities
for the six Asia ex-Japan markets where data is available (i.e. Korea, Taiwan,
India, Thailand, Indonesia and the Philippines) accelerated to US$3.2bn,
following last week’s rebound to US$1.3bn. This brings the cumulative YTD
foreign buying for the region to US$5.4bn.
…led by India and Korea. Strong foreign net-buying persisted in India at
US$1.1bn – a level not seen for 11 weeks. Net-buying in Korea accelerated to
US$1bn after a turnaround to US$213m last week. Although Taiwan recorded
net-selling for three out of five trading days during the week, the weekly total
still stood at positive US$160m, up from US$38m last week. But Taiwan
clearly lagged India and Korea.
Southeast Asia noticeably strong. Foreign investors strongly bought back
in Thailand (at US$572m on the week) following seven consecutive weeks of
net-selling totalling -US$1.5b prior to that country’s July 3 general election.
Net-buying in Indonesia continued to increase (US$266m vs. last week’s
US$127m and YTD average of US$78m), marking the fourth consecutive
week of net-positive buying. And net-buying in the Philippines also increased
to US$71m from net-selling of -US$20m the week before. Malaysia’s foreign
net-buying data is released only monthly; for June, net-buying in Malaysia
doubled to US$1bn from May.
Japan’s rebound consistent with rest of Asia. For the week ending July 1.
Japan was net-bought by US$3.1bn, reversing net-selling of -US$274m the
week before.
Frontier markets – odd man out. Asia’s frontier markets (Vietnam, Pakistan,
and Sri Lanka) in aggregate recorded net-selling of US$28m vs. net-positive
foreign buying of US$20m the week before and a YTD average net buying of
US$5.6m.
Fund Subscription data: Equity asset class winning flows
GEM subscriptions moderate WoW from high level. Weekly subscriptions
to broad Global Emerging Market funds moderated slightly to a still-positive
US$745m from US$1bn but remain well above the YTD average for netredemptions
of US$46m. This marks a third consecutive positive week, while
bond funds globally have been net sold for the two weeks ending Jun 29.
Emerging Asia: Strong subscriptions at China- and SE-Asian country
funds. Asia ex-Japan regional funds received their strongest weekly netsubscriptions
since Nov. 2010, while single-country funds for nine of 12 Asian
markets saw improvements WoW. Malaysian funds in particular received their
highest net-subscriptions since 2008 (at US$116m) and Indonesia funds
received US$43m, highest since Oct. 2010. China funds received US$216m,
a 12-week high. Taiwan-dedicated funds, on the other hand, received netredemptions
of US$526m, following an abnormally high level of US$2.1bn in
net buying the week before -- likely driven by speculation over a possible
MSCI upgrade to Developed Market status (which did not happen).
Developed Asia: Japan subscriptions pick up. Japan funds received
weekly subscriptions of US$719m vs. US$120m the week before, while
subscriptions moderated WoW for Asia-Pacific Funds (which combine
Australia and New Zealand with Japan and emerging Asia).
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