17 Jan 2014
Flash: Capital outflows from Asia re-accelerated - ANZ
FXstreet.com (Bali) - According to Richard Yetsenga, Head of Global Markets Research at ANZ, capital flows accelerated in Asia, in the week ending 15 January.
Key Quotes
"Capital outflows from Asia re-accelerated in the week ending 15 January, to USD671m, up from USD347m in the previous week and the highest in three weeks. This was despite a poor US non-farm payroll report released last Friday."
"Funds flowed out from both the equities (USD549m) and bond markets (USD122m) in Asia. Outflows from equities were led by Korea but China continued to see inflows. On bonds, outflows were mosly seen in SE Asian markets."
"For EMs as a whole, bond outflows also picked up momentum, to USD774m, up from USD70m in the previous week, the highest in three weeks. In line with the poor performance of EM currencies, outflows from local currency bonds picked up sharply."
"We see capital flows continuing to work against Asia and other EM currencies, as funds flow back to developed markets, in line with our reversification theme."
Key Quotes
"Capital outflows from Asia re-accelerated in the week ending 15 January, to USD671m, up from USD347m in the previous week and the highest in three weeks. This was despite a poor US non-farm payroll report released last Friday."
"Funds flowed out from both the equities (USD549m) and bond markets (USD122m) in Asia. Outflows from equities were led by Korea but China continued to see inflows. On bonds, outflows were mosly seen in SE Asian markets."
"For EMs as a whole, bond outflows also picked up momentum, to USD774m, up from USD70m in the previous week, the highest in three weeks. In line with the poor performance of EM currencies, outflows from local currency bonds picked up sharply."
"We see capital flows continuing to work against Asia and other EM currencies, as funds flow back to developed markets, in line with our reversification theme."