UK markets close in 3 hours 30 minutes
  • FTSE 100

    5,567.54
    -14.21 (-0.25%)
     
  • FTSE 250

    17,186.70
    +9.02 (+0.05%)
     
  • AIM

    949.90
    +0.60 (+0.06%)
     
  • GBP/EUR

    1.1091
    +0.0027 (+0.24%)
     
  • GBP/USD

    1.2976
    +0.0052 (+0.41%)
     
  • BTC-GBP

    10,284.63
    +0.28 (+0.00%)
     
  • CMC Crypto 200

    261.36
    +18.68 (+7.70%)
     
  • S&P 500

    3,310.11
    +39.08 (+1.19%)
     
  • DOW

    26,659.11
    +139.16 (+0.52%)
     
  • CRUDE OIL

    36.11
    -0.06 (-0.17%)
     
  • GOLD FUTURES

    1,886.50
    +18.50 (+0.99%)
     
  • NIKKEI 225

    22,977.13
    -354.81 (-1.52%)
     
  • HANG SENG

    24,107.42
    -479.18 (-1.95%)
     
  • DAX

    11,551.85
    -46.22 (-0.40%)
     
  • CAC 40

    4,571.55
    +1.88 (+0.04%)
     

Asian stocks see heavy outflows in September as virus woes weigh

Gaurav Dogra and Patturaja Murugaboopathy
·2-min read
A worker wearing a protective mask cleans the floor near an electronic board displaying the stock market index at the Indonesia Stock Exchange (IDX), in Jakarta
A worker wearing a protective mask cleans the floor near an electronic board displaying the stock market index at the Indonesia Stock Exchange (IDX), in Jakarta

By Gaurav Dogra and Patturaja Murugaboopathy

(Reuters) - Foreigners turned net sellers of Asian equities after three consecutive months of buying as concerns over a resurgence of the coronavirus and a firmer U.S. dollar dimmed demand for riskier assets.

Cross-border investors sold a combined net total of $6.5 billion worth of equities in Indian, Indonesian, Philippine, South Korean, Taiwanese, Thai and Vietnamese stocks in September, data from stock exchanges showed, marking their first monthly net selling since May.

Equity flows into Asia have not really reverted since March, said Frank Benzimra, head of Asia equity strategy at Socite Generale, adding that a correction in U.S. tech stocks and rising concerns over a resurgence of the virus in Europe affected flows last month.

(GRAPHIC - Foreign investments in Asian equities: https://fingfx.thomsonreuters.com/gfx/mkt/bdwpkkbeypm/Foreign%20investments%20in%20Asian%20equities.jpg)

"We need some catalysts, such as a breakthrough in terms of treatment/vaccine for COVID-19, dollar peaking, or some clear signs that the V-shape recovery of 3Q can be sustained into 4Q and beyond," he said.

Paul Sandhu, head of multi-asset quant solutions at BNP Paribas Asset Management, said Asia's better handling of COVID-19 compared with developed markets could lure inflows in coming months.

Tech-reliant South Korea and Taiwanese stocks saw bigger margin of regional outflows, which was triggered by a heavy sell-off in tech stocks in the United States.

Taiwan faced $2.5 billon worth of outflows, while South Korea saw $1 billion.

Indian and Indonesian equities faced outflows of $1 billion each due to worries over higher number of COVID-19 cases.

India's tally of cases stood at 6.76 million, as of Wednesday, which was second only to the United States, while Indonesia had at least 0.3 million infections.

(GRAPHIC - Asian countries' daily new coronavirus cases: https://fingfx.thomsonreuters.com/gfx/mkt/xlbpgjebjvq/Asian%20countries'%20daily%20new%20coronavirus%20cases.jpg)

Thai and Philippine equities faced outflows of $732 million and $306 million respectively.

Bucking the trend, Vietnamese shares received $135 million worth of inflows as the economy picked up pace in the third quarter, backed by an effective containment of the pandemic.

(Reporting by Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Sherry Jacob-Phillips)