EM Asia: Strong portfolio flows - ANZ

According to Khoon Goh, analyst at ANZ, the overall portfolio flows into Asia ex-China ended Q1 on a strong note as net buying was recorded across both debt and equity markets.

Key Quotes

“But, the distribution in equities was highly skewed, and less concentrated on the debt front.”

“Massive equity inflows into India, on increasing expectations of Modi’s re-election, inflated the regional aggregate. There would have been outflows if India were excluded.”

“Lower US yields were supportive of debt flows into the region. India again dominated on the debt inflow side, though robust inflows were also seen in other markets.”

“The March PMI data showed the first signs of improving activity. Further indication that the growth slowdown is near an end, especially the export downturn, is needed to sustain the strong inflows seen so far this year.”