Headlines have crossed from BoJ board member Koeda's speech. At first glance they appear in line with recent rhetoric from key BoJ board members. There were some hawkish undertones, with Koeda noting that the central bank must normalize rates to avoid distortions in the future and that underlying inflation is around 2%. She added that inflation is relatively strong, but via RTRS: "IN ORDER TO ACHIEVE THE PRICE STABILITY TARGET, IT IS IMPORTANT TO EXAMINE THE EXTENT TO WHICH UNDERLYING INFLATION REMAINED STABLE OR BEEN ANCHORED". She also didn't give any hints on rate hike timing (which is hardly surprising ahead of Ueda's speech on Dec 1).
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Yesterday saw outflows from South Korea, but Taiwan inflows were positive. For South Korea, this looks to be a pause in what is otherwise a positive flow backdrop, as we continue to see global equity sentiment recover after last week's credit induced wobbles. Apple also buoyed broader tech sentiment as shares rallied on positive reports on new Iphone demand. This should benefit markets like South Korea and Taiwan. So far today, both markets are tracking firmly higher, both at fresh record levels. For Taiwan, yesterday's inflow still wasn't enough to bring the 5-day sum back into positive territory though.
Table 1: Asian Net Equity Flows
| Yesterday | Past 5 Trading Days | 2025 To Date | |
| South Korea (USDmn) | -77 | 1135 | 3495 |
| Taiwan (USDmn) | 257 | -973 | 6587 |
| India (USDmn)* | 100 | 760 | -16167 |
| Indonesia (USDmn) | 32 | 11 | -3081 |
| Thailand (USDmn) | 2 | -156 | -3096 |
| Malaysia (USDmn)** | -45 | -135 | -4175 |
| Philippines (USDmn) | -2 | -18 | -716 |
| Total (USDmn) | 267 | 624 | -17153 |
| * Data Up To Oct 20 | |||
| ** Data Up To Oct 17 |
Source: Bloomberg Finance L.P./MNI

The USD/CNY fix printed at 7.0930, a fresh low for 2025 and back to Oct last. The BBG market consensus was 7.1219, leaving the fixing error at -289pips, only slightly tighter than yesterday's -356pips outcome. USD/CNH is testing sub 7.1200 in latest dealings, with today's fixing result to keep the downside bias in the pair intact. A clean break under recent lows (7.1168) should bring the 7.100 level back into focus.