Mitul Kotecha, senior emerging markets strategist at TD Securities, points out that portfolio inflows to Asia have surged over recent weeks in tune with the rally in equity markets and local currency bonds.
Key Quotes
“Asian currencies have benefited from stronger inflows.”
“A number of factors have supported the surge in flows and we see little risk of a turnaround in the coming weeks given that some key risks to the region have been sidelined or at least diminished for now.”
“India has led the way in terms of equity inflows followed by Taiwan while Korea and Indonesia have registered strong bond inflows.”
“We find that hedge funds have had a limited participation in the rally in EM Asian assets and see scope for some capitulation as these investors increase their allocations to Asian equities and bonds.”
Share
