Weekly Fund Flow Tracker- TIPs still tops:: Macquarie Research,

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Weekly Fund Flow Tracker
TIPs still tops
Local exchange data: Net-buying back in the black
 Foreign net-buying in Asia continued to be TIPs-driven… For the week
ending Wednesday, July 27, 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) stood at US$646m, a rebound
from net-selling of -US$1bn last week. This was primarily driven by Thailand,
Indonesia and the Philippines, which combined were net-bought by
US$710m, almost double last week’s US$358m. Cumulative YTD net-buying
for these markets now amounts to 1.0%, 2.4% and 2.5% of total market cap,
respectively. On the other hand, net-buying in India continued to diminish – to
US$149m from US$183m the week before.
 …While net-selling in Northeast Asia eased. Foreign net-selling eased
WoW for both Taiwan (-US$39m vs. last week’s -US$716m) and Korea (-
US$174m vs. -US$860m), although trends are pointing to heavier selling
towards the end of our Wed-Thus “data week” as Washington’s fiscal impasse
continued to weigh on global equity markets.
 Japan recovered from previous week’s selling. Japan’s data comes with a
one-week lag, but for the week ending July 22, foreign net-buying in Japan
increased to US$300m from net-selling of -US$686m last week, consistent
with the broad Asia trend.
 Selling in frontier markets continues to suggest risk aversion. Foreign
net-selling in Pakistan intensified to -US$18.5m from -US$11m the week
before, while net-buying in Vietnam slowed to US$1.1m from last week’s
US$2.3m. This is only partially offset by easing net-selling in Sri-Lanka (-
US$1.5m from -US$2m).
Fund subscriptions data: Rotation to TIPs
 Weekly GEM subscriptions back into the black. Net-subscriptions to broad
Global Emerging Markets funds rebounded to US$289m from netredemptions
of -US$602m, in line with the above local exchange data on
foreign net-buying.
 Emerging Asia: TIPs subscriptions continued to strengthen. This week’s
single-country fund subscription data also mirror the local exchange data –
showing sustained net-subscription to Indonesia- and Philippine-dedicated
funds (both for an 11th consecutive week). Additionally, weekly netsubscriptions
at Thailand-dedicated funds hit a 14-week-high.
 Elsewhere, though, China-, Taiwan-, India-, Singapore- and Malaysiadedicated
funds all received net-redemptions this week. But net-subscriptions
at the pan-regional Asia ex-Japan fund level rebounded to US$34 from netredemptions
of -US$95 the week before. And Korea-, Hong Kong-, Greater
China- and Vietnam-dedicated funds all received positive net-subscriptions.
 Developed Asia: firmer WoW. Japan funds received net-subscriptions of
US$274m vs. US$157m the week before (and YTD average of US$117m),
while redemption of Asia-Pacific funds (which combine Australia, New
Zealand and Japan with emerging Asia) eased (-US$5m vs. -US$38m).