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14 Feb 2014
Flash: Portfolio outflows from emerging Asia still large - ANZ
FXStreet (Bali) - In view of Richard Yetsenga, Head of Global Markets Research at ANZ, outflows from emerging Asia remains large.
Key Quotes
"Portfolio outflows from Emerging Asia remained large at USD2,231m in the week ending 12 February, though it was down from previous week’s USD4,235m. We think the rebound in global equities post Fed Chairman Yellen’s testimony has helped slow outflows from Emerging Asia’s stock markets (USD1,927m vs USD3,839m the week ago). Outflows from Emerging Asia’s bond markets continued (USD305m), though at a slightly slower rate compared to the previous week (USD396m)."
"Globally, there was a partial reversal of funds back to equities (USD11.5bn) after a large outflow (USD28.2bn) in the previous week, with the US (USD7.4bn) and Europe (USD4.5bn) being the predominant recipients of inflows."
"The key takeaway is that improved risk appetite has benefited mainly developed markets while portfolio outflows from emerging markets continued. For example, foreign investors sold another USD1.4bn of bonds from emerging bond markets as a whole. Also, risk sentiment has improved only modestly, as funds continued to flow into developed market bonds, though at a more modest rate compared to a week ago."
Key Quotes
"Portfolio outflows from Emerging Asia remained large at USD2,231m in the week ending 12 February, though it was down from previous week’s USD4,235m. We think the rebound in global equities post Fed Chairman Yellen’s testimony has helped slow outflows from Emerging Asia’s stock markets (USD1,927m vs USD3,839m the week ago). Outflows from Emerging Asia’s bond markets continued (USD305m), though at a slightly slower rate compared to the previous week (USD396m)."
"Globally, there was a partial reversal of funds back to equities (USD11.5bn) after a large outflow (USD28.2bn) in the previous week, with the US (USD7.4bn) and Europe (USD4.5bn) being the predominant recipients of inflows."
"The key takeaway is that improved risk appetite has benefited mainly developed markets while portfolio outflows from emerging markets continued. For example, foreign investors sold another USD1.4bn of bonds from emerging bond markets as a whole. Also, risk sentiment has improved only modestly, as funds continued to flow into developed market bonds, though at a more modest rate compared to a week ago."