Global funds trickle back into Asian stocks

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SHANGHAI: Foreign traders are returning to rising Asian equities after a number of weeks of outflows, as China reopens from Covid lockdowns and the greenback pulls back from a year-long rally.

Weekly inflows for Asian inventory markets, excluding Japan and China, climbed to virtually US$2.7bil (RM11.86bil) final week, essentially the most since February, based on information compiled by Bloomberg.

Taiwan and South Korea noticed the most important inflows at round US$1bil (RM4.39bil) every, paring mixed outflows for the 2 tech-heavy markets for the 12 months to below 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 e-mail.

The reopening of China’s economic system has sparked a swift turnaround in sentiment towards Asia, as exercise returns to main cities like Shanghai and Beijing.

Whether the flows can proceed will depend upon a sustainable reopening in China and the Federal Reserve slowing down its plans for fee hikes, wrote Nomura strategist Chetan Seth in an e-mail. — Bloomberg



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