Weekly Fund Flow Tracker Still bleeding; TIPs less immune ::Macquarie Research,

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Weekly Fund Flow Tracker
Still bleeding; TIPs less immune
Local exchanges data: No pause for outflows just yet
 Foreign net-selling in Asia ex-Japan continued. For the week ending
Wednesday, August 24, aggregate foreign net-selling in the six Asia ex-Japan
markets where data is available (i.e. Korea, Taiwan, India, Thailand,
Indonesia and the Philippines) picked up to US$-3.3bn from last week’s US$-
2.0bn, bringing August MTD net-selling to US$-16.3bn, third highest month on
record (after US$-18.3bn in August, 2007 and US$-16.6bn in January 2008).
 Weekly selling in North Asia combined came to US$-1.6bn, just US$74m
higher than last week’s amount: but this reflected intensified foreign netselling
in Korea (US$-725m vs. US$-32m last week) offset by easing netselling
in Taiwan (US$-908m vs. US$-1.5b a week ago).
 TIPs less immune. Southeast Asia proved less resistant to selling this week
than recently. The TIPs markets combined recorded US$-1.0bn foreign netselling,
nearly five times last week’s US-205m -- led primarily by Thailand
(US$-640m vs. US$-77m) and Indonesia (US$-345m vs. US$-119m
previously). With this, YTD cumulative net-buying in Thailand has now fallen
into the negative. Separately, net-selling in India increased to US$-629m from
US$-205m a week ago.
 Net-selling in Japan consistent with broad Asia trend. Data for Japan
comes with a lag, but for the week ending Friday, Aug. 19, net-selling in
Japan eased to US$-2.0bn from US$-4.4bn the week before.
 Easing net-selling in Frontier markets. Vietnam recorded net-buying during
the week, while net-selling in Sri-Lanka eased to US$-4.5m from US$-8.0m
previously. This was partially offset by increased selling in Pakistan of US$-
3.0m from last week’s US$-1.4m.
Fund subscriptions data: Worst may be past for GEM funds
 Easing GEM redemptions suggest bearish peak may have passed.
Weekly net-redemptions from broad Global Emerging Market funds shrank
further WoW, to an almost negligible US$-61m from US$-469m the week
before (and US$-3.2bn two weeks ago).
 Emerging Asia: marginal improvements but still net-redeemed. Weekly
net-redemptions at the pan-Asia ex-Japan regional funds also eased to US$-
105m from US$-163m the week before. All regional single-country fund
categories except Indonesia still received net-redemptions this week, but
Taiwan-, Singapore-, China- and Greater-China-dedicated funds at least
experienced reduced redemptions WoW.
 Developed Asia: back to the black. Both Japan-dedicated funds and
broader Asia-Pacific funds (which combine Australia, New Zealand and
Japan with emerging Asia) received net-positive weekly subscriptions – a
turnaround from net-redemptions last week – and ending a 6-week
consecutive net-redemption streak for the latter.