By Gaurav Dogra
May 5 (Reuters) - Overseas investors turned net buyers of
Asian equities in April for the first time this year, helped by
signs of economic recovery, with the region posting a strong
rebound in manufacturing activity and exports.
The inflows, however, were modest as investors maintained a
cautious stance amid risks thrown up by the coronavirus
pandemic.
Foreigners were net buyers of a combined total of $367
million in South Korean, Taiwanese, Philippine, Thai,
Vietnamese, Indonesian and Indian stocks last month, data from
stock exchanges showed. That compares with an average monthly
inflow of $3.7 billion in the second half of last year.
South Korea, Taiwan, Indonesia, and Vietnam showed a rise in
their manufacturing activity in April, helped by a surge in
overseas demand for their goods, with developed economies making
a fast recovery from the pandemic fallout.
Taiwanese equities led the region, with inflows worth $1.9
billion in April, with the economy posting its highest quarterly
growth in more than a decade as demand for its tech exports
surged. "Taiwan's inflows can be attributed to several factors,
including a weakening U.S. dollar, strong export orders and
industrial production growth," Margaret Yang, strategist at
DailyFX said.
Indonesia and South Korea received inflows last month worth
$90 million and $65 million, respectively.
However, Indian equities faced outflows worth $1.3 billion,
with the country facing the world's biggest surge in coronavirus
cases.
India's daily cases rose by a record high of 382,315 and its
death toll also touched a high of 3,780 on Wednesday, raising
more pressure on its government to impose a national lockdown.
Meanwhile, foreigners also sold Philippine shares for the
18th consecutive month in April, as a two-week lockdown in
Manila and some other provinces hit its economic activity.
"The future outlook (for flows) remains uncertain amid
another viral wave that is hitting India and its neighbouring
countries," Daily FX's Yang said.
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Foreign investments in Asian equities https://tmsnrt.rs/2RreoWj
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