Mitul Kotecha, senior emerging markets strategist at TD Securities, points out that portfolio inflows to Asia have trodden a rocky path over H1 19, but have been solid overall.
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“Inflows are bouncing back strongly following the May sell off.”
“Prospects of lower US rates, a trade truce between the US and China and a likely wave of easing by Asian central banks will help to spur bond and equity inflows.”
“Our equity and bond flow momentum indicators have become increasingly positive, suggesting that inflows will be sustained over the weeks ahead.”
“Post elections, India has been a leader in terms of equity inflows, while Korea dwarfs other countries in terms of bond inflows.”
“Our positioning analysis shows that hedge funds are underweight Asian LC bonds but at weight in terms of equities. Suggests scope for more bond inflows.”
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