2018 sees first outflow of funds from Emerging Asia for 10 years

SINGAPORE -  Portfolio flows into Asia ex-China turned negative in December after a short recovery the previous month, giving the region total net outflows of USD25.9 billion for calendar year 2018 - the first full-year outflow since 2008, says ANZ Bank.

While the temporary reprieve in US-China trade tensions saw foreign investors return to China's debt market in the month, outflows from the Asia ex-China equity markets indicate investors are still concerned about the region's growth outlook, says ANZ.

"The new year has seen a return of inflows, as a shift in the US Federal Reserve's language around their policy normalisation and optimism that US-China trade talks will result in a deal have helped to improve investor sentiment towards Asian assets.

"But sentiment and flows can be fickle and we can expect volatility to persist in 2019."  www.live.anz.com (ATI).