Portfolio inflows into Asia remained positive in February
SINGAPORE - Portfolio flows into Asia ex-China remained positive for the second straight month in February, with net buying recorded across both debt and equity markets. However, inflows were not broad-based across economies.
Although Indonesia led debt inflows in the region, Taiwan and India spearheaded equity inflows. China saw positive but very modest debt flows, in stark contrast with the strong inflows throughout most of last year.
In a research note, ANZ Bank says investors now expect a trade deal between the US and China to be concluded, and that the US Federal Reserve's dovish tilt earlier in the year has now been factored in by investors.
"What is needed to continue to drive inflows into the region are signs that growth is recovering. Judging from recent export and PMI data, this is not occurring yet," the note says. www.live.anz.com (ATI).