Asian equities saw a massive influx of foreign capital in April, in anticipation of a stylish US Federal Reserve policy and concerns over the impact of China’s lockdown on regional growth.
According to reflective data from stock exchanges in Taiwan, India, South Korea, Philippines, Vietnam, Indonesia and Thailand, foreign investors offloaded ক্য 14.22 billion worth of Asian equity in the fourth month of their net sales.
The region’s combined net foreign sales between January and April were $ 45.76 billion, the highest in at least the first four months since 2008.
FED monetary policy and lockdown in China
Analysts say rising expectations of aggressive monetary policy tightening in the U.S. and a lockdown in China, affecting regional businesses, sidelined investors in April.
Taiwanese, South Korean and Indian equities saw foreign inflows of $ 8.86 billion, $ 4.97 billion and $ 2.24 billion, respectively, while rising inflation also remained a major concern for investors in South Korea and India.
South Korean consumer inflation
South Korean consumer inflation hit a 13-year high in April. Meanwhile, the Reserve Bank of India this week raised its core lending rate by 40 basis points to curb rising retail prices.
However, Indonesian, Thai and Vietnamese equities witnessed overflows of $ 1.57 billion, $ 289 million and $ 175 million in April, respectively.
Information and sources
Reporter: Nataphone Complexit
Rewriter: Paul Rujopakorn
National News Bureau: http://thainews.prd.go.th