Weekly inflows for Asian stock markets, excluding Japan and China, climbed to almost US$2.7bil (RM11.86bil) last week, the most since February, according to data compiled by Bloomberg. Taiwan and South Korea saw the biggest inflows at around US$1bil (RM4.39bil) each. (File pic: Taiwan stock exchange.)
SHANGHAI: Foreign investors are returning to emerging Asian equities after several weeks of outflows, as China reopens from Covid lockdowns and the dollar pulls back from a year-long rally.
Weekly inflows for Asian stock markets, excluding Japan and China, climbed to almost US$2.7bil (RM11.86bil) last week, the most since February, according to data compiled by Bloomberg.
Taiwan and South Korea saw the biggest inflows at around US$1bil (RM4.39bil) each, paring combined outflows for the two tech-heavy markets for the year to under US$40bil (RM175.64bil).
“China’s easing of restrictions has removed the clouds of uncertainty for the region, creating room for a further pickup in manufacturing activity,” Saxo Capital Markets market strategist Charu Chanana wrote in an email.
The reopening of China’s economy has sparked a swift turnaround in sentiment toward Asia, as activity returns to major cities like Shanghai and Beijing.
Whether the flows can continue will depend on a sustainable reopening in China and the Federal Reserve slowing down its plans for rate hikes, wrote Nomura strategist Chetan Seth in an email. — Bloomberg
