EM Asia portfolio flows turn positive in January – except for India

SINGAPORE - An ANZ Bank research report says portfolio flows into Asia ex-China turned positive at the start of the year. However, most buying was concentrated in equities. India was the only exception, recording equity outflows in the month.

The report says the US Federal Reserve's dovish tilt failed to spur flows into the debt market. Instead, most markets experienced outflows, with only Indonesia and the Philippines seeing inflows.

"Debt inflows to China were marginal, but this is coming off a very strong inflow the previous month.

"US-China trade talks and concerns over growth presage some volatility in portfolio flows into the region over the coming months. But so far in February, the inflows appear to be continuing."  www.live.anz.com (ATI).