Taiwan, India lure foreign money in September, but other Asian markets see sharp outflows

This post was originally published on this site

© Reuters. Taiwan, India lure foreign money in September, but other Asian markets see sharp outflows© Reuters. Taiwan, India lure foreign money in September, but other Asian markets see sharp outflows

By Gaurav Dogra and Patturaja Murugaboopathy

(Reuters) – India and Taiwan equities received strong foreign inflows in September due to some local factors, but other regional markets saw outflows on concerns over the U.S.-China trade war and slowing economic growth.

Last month, Taiwan’s markets received about $2.9 billion of foreign investment, on optimism over its economy, as a growing number of local firms were shifting their factories back home from mainland China, seen as aiding their export revenues.

Indian equities attracted about $1.1 billion worth of foreign inflows thanks to a corporate tax cut announced by the Finance Minister Nirmala Sitharaman to boost manufacturing and private investment.

However, investors withdrew money from other markets on concerns over slowing global trade and the prolonged Sino-U.S. trade war.

South Korea, Indonesia and Thailand recorded outflows of $874 million, $519 million and $379 million, respectively, last month, the exchange data showed.

Philippines and Vietnam were the other markets which saw outflows in September.

Investors’ focus has shifted to the next round of U.S.-China trade negotiations in Washington on Oct. 10-11 to see if the two sides can end a bruising trade war that has raised fears of recession.

“Uncertainty is high and news flow has been mixed, with China’s new purchase of U.S. agriculture products coming together with speculation on a potential U.S. crackdown on portfolio flows into China,” said J.P.Morgan in a report on Monday.

At the end of last month, Reuters reported that President Donald Trump’s administration is considering delisting Chinese companies from U.S. stock exchanges.

Jingyi Pan, a Singapore-based market strategist with financial services firm IG, expects further turbulence in Asian stocks, saying a lack of positive news from the trade talks may

be seen by investors as opening the way for more tariffs.

Washington had delayed an Oct. 1 tariff hike as a goodwill gesture ahead of the talks, but has said it would go ahead with the plan from Oct. 15, with another move slated for Dec. 15.

“From a valuation perspective, Asia markets should have room to gain. That said, the event risks this month are in abundance which could keep foreign investors on the sidelines until the end of the month when there could be greater clarity,” she added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.