ASIA STOCKS: Few Bright Spots, South Korean Outflows Surge Amid Tech Concerns

Outflows, particularly from South Korea, have been the dominant feature of EM Asian market flows as we approach the end of the week. The past 5 trading days has seen just over $3.7bn in net outflows from South Korea, while the first 4 days of this week has seen close to $5bn in net outflows, the most since 2021 (on a weekly basis). Kospi volatility remains very high (the market down a further 2.5% so far today). South Korean stocks are a good barometer for both global and tech related trends, and given the extent of the recent run higher, some paring in risk is not surprising. Net flows are now back into negative territory for the year. 

• Taiwan markets also continue to see outflows, albeit at a more modest pace. As we noted yesterday, the past trading month has seen stronger outflow momentum from Taiwan (nearly $7.4bn), so short term positioning may be more balanced relative to South Korea. Still, Taiwan maintains a modestly YTD inflow sum.
• Indian inflow momentum remains negative, while in South East Asia there are few bright spots, outside of Indonesia.
• Philippines markets may come under fresh pressure, as today's much weaker than expected Q3 GDP result has seen the PCOMP slump back to multi year lows. 

Table 1: Asia Markets Net Equity Flows 

Source: Bloomberg Finance L.P./MNI