by winston » Wed Oct 28, 2015 6:07 pm
Where Is Foreign Institutional Money Positioned Across Asia? By Shuli Ren
Foreigners have bought Asian stocks again in October after four consecutive months of net outflows. There was net buying of $3.3 billion as of October 23.
Taiwan was the most preferred market, seeing a $1.9 billion inflow so far, followed by India with $0.8 billion, data provided by HSBC shows. However, year-to-date, India is by far foreigners’ favorite market in Asia.
Mutual funds data for September showed fund managers were overweight on only two markets in the region, namely Taiwan and India. Korea is the most under-owned market, while mutual fund exposure to China fell to a five-year low. ASEAN countries such as Malaysia, Singapore and Thailand remained out of favor.
Asian equities rallied in October. But “the positive fund inflows were more a reflection of increasing risk to growth in developed markets, rather than any fundamental improvement in the Asian markets’ outlook,” wrote strategist Herald van der Linde.
Asian markets retreated ahead of the Federal Reserve‘s meeting today. The Shanghai Composite Index slumped 1.7%, the ChiNext Index retreated 2.9%, the Hang Seng China Enterprises Index fell 1.3%. Indonesia’s Jakarta Composite Index fell 1.3%, India’s Sensex Index dropped 0.6%, Malaysia’s KL Composite Index retreated 0.5%, and the Philippines PSE Index was down 0.4%. Korea’s KOSPI Index and Taiwan’s TAIEX fell 0.1% and 0.4% respectively.
In October, the iShares MSCI Taiwan ETF (EWT) rose 8.1%, the iShares MSCI India ETF (INDA) rose 2.1%, the iShares Malaysia ETF (EWM) gained 6.8%, the iShares MSCI Thailand Capped ETF (THD) rose 7.8% and the iShares MSCI Philippines ETF (EPHE) was up 9.6%.
Source: Barron's Asia
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