Foreign portfolio inflows into EM Asia eased in July - ANZ

Foreign portfolio inflows into EM Asia eased in July while demand for debt stayed robust, foreign investors turned net sellers of equities for the first time since December 2016, points out Khoon Goh, Head of Asia Research at ANZ.

Key Quotes

“Indian saw the largest inflow into both equities and bonds in the month, as investors continue to be attracted to the country’s reform story.”

“Geopolitical tensions in the Korean peninsula, alongside prospects for liquidity withdrawal from major developed market central banks, have seen a pick-up in equity outflows and pressure on asset prices in the early part of August. The risk of further unwinding of the strong H1 inflows is high.”