EM LATAM CREDIT: Braskem: S&P downgrade, off wneg.

• MNI JAPAN JUNE CORE MACHINE ORDERS +3.0% M/M; MAY -0.6%
• JAPAN JUNE MACHINE ORDERS POSTS 1ST M/M RISE IN 3 MONTHS

• MNI: JAPAN JULY EXPORTS -2.6% Y/Y; JUNE -0.5%
• JAPAN JULY EXPORTS POST 3RD STRAIGHT Y/Y DROP

South Korea and Taiwan markets saw outflows from offshore investors yesterday. For Taiwan the nearly $500mn in outflows was the largest since July 29. For both markets, the 5 day sum is negative. Broader tech equity weakness continued in Tuesday trade. There has been some concerns voiced around the AI outlook recently, while proximity to Fed Chair Powell's speech this Friday may also be driving some nervousness in terms of broader market trends.  

• Elsewhere we saw offshore investors return to India at the start of the week, with the recent equity bounce (aided by potential GST changes) drawing in some inflows. Still, cumulative outflows since the start of July were close to $4.7bn, so momentum needs to meaningful shift in order to bring us closer to neutral from a Q3 standpoint.
• Indonesian flows remained positive, while weaker trends were evident elsewhere in South East Asia. Malaysia continued its outflow streak. 

Table 1: Asian Markets Net Equity Flows 

Source: Bloomberg Finance L.P./MNI