By Gaurav Dogra and Patturaja Murugaboopathy
Nov 8 (Reuters) - Foreign investors stepped up buying in
Asian equities in October as risk sentiment improved on signs
that China and the United States were closer to an interim trade
deal, soothing concerns about a slowdown in the region.
Overseas investors bought $5.46 billion worth of regional
equities in the last month, the highest in six months, data from
stock exchanges in South Korea, Taiwan, India, Thailand,
Philippines, Indonesia and Vietnam showed.
However, the inflows went mostly to equities markets in
Taiwan and India.
Taiwan received $4.45 billion worth of foreign money,
bolstered by its solid economic growth and rising exports. The
island economy grew at its fastest pace in more than a year
during the July to September quarter. "The (Taiwanese) economy may have started to benefit from
the trade diversion and investment repatriation effects of the
China-U.S. trade war," DBS bank said in a report.
India equities attracted $1.74 billion last month, propped
up by strong earnings growth in the September quarter by its top
companies such as IT services firm HCL Technologies Ltd
HCLT.NS , consumer goods giant Hindustan Unilever HLL.NS and
manufacturing-to-software conglomerate L&T LART.NS .
The Philippines also had some marginal inflows last month.
However, Indonesian, Thai and South Korean equities faced
outflows in October due to concerns over their economic growth.
Indonesia's economic growth slipped to its weakest pace in
more than two years in the third quarter, while South Korea also
reported slower-than-expected growth.
However, analysts are optimistic about flows into emerging
equities, with many expecting an initial trade deal to be signed
between the world's top two economies this month.
China and the United States have agreed to roll back tariffs
on each other's goods in a "phase one" trade deal if it is
completed, officials from both sides said on Thursday.
"With greater interests displayed by both U.S. and China in
sustaining the ceasefire, we could be seeing these flows into
Asia equities sustaining towards the U.S.-China 'phase one'
trade deal establishment," said Jingyi Pan, a Singapore-based
market strategist with financial services firm IG.
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Foreign investments in Asian equities https://tmsnrt.rs/34y7qA9
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