ASIA STOCKS: South Korea Inflows Remain Strong, Taiwan Lags
Yesterday's EM Asia equity flow update was highlighted by divergences between South Korea and Taiwan. The +$1bn in net inflows to local South Korean stocks yesterday bought year to date inflows to over $2.3bn. In contrast, Taiwan net flows for the year remain modestly negative. Headline stock indices for both countries are up comfortably so far in 2026, although South Korea's Kospi is outperforming, up over 9%, compared to the Taiex's ~5% rise. The Kospi is pushing to fresh record highs today, with an earlier Samsung profit beat likely helping sentiment. The Taiex is tracking a touch weaker in the first part of trade.
- In India, the net flow sum is negative for the past 5 trading days. Local stocks have largely tracked sideways since the start of Dec last year. Focus remarks on progress around US-India trade.
- In South East Asia, yesterday saw modestly positive inflows for the region. At this stage, only Malaysia has recorded year to date outflows. The aggregate moves are modest though.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2026 To Date | |
| South Korea (USDmn) | 1044 | 2320 | 2320 |
| Taiwan (USDmn) | -879 | -219 | -219 |
| India (USDmn)* | -2 | -694 | -186 |
| Indonesia (USDmn) | 12 | 113 | 113 |
| Thailand (USDmn) | 15 | 20 | 20 |
| Malaysia (USDmn) | 20 | -80 | -80 |
| Philippines (USDmn) | 3 | 37 | 37 |
| Total (USDmn) | 213 | 1497 | 2005 |
| * Data Up To Jan 6 |
Source: Bloomberg Finance L.P./MNI
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: Yields Lower, TYH6 Near Mid-Point of Key Tech Levels
The US 10-Yr (TYH6) had opened the Asia trading day at 112-09+ with volumes low, sitting below the 100-day EMA of 112-15 for the first time since July. TYH6 is up at 112-10+ in morning trade, at the approximate mid-point between the 100-day EMA and the bottom side resistance being the 200-day EMA of 111-29+
Cash sees yields 0.3 -0.5bps lower. The 2-Yr and 3-Yr are unchanged this morning as markets are locked in for FOMC.
- The 2-Yr is at 3.577%
- The 5-Yr is at 3.745%
- The 10-Yr is at 4.162% - 0.4bps lower
- The 30-Yr is at 4.799% - 0.4bps lower
The 10-Yr remains in the 4.00% -4.20% range that has held in recent weeks. A more hawkish outlook from the FED could see new ranges established, particularly for the 10-yr.
Tonight sees a US$75bn 6-week bill auction and a US$39bn 10-Yr auction.
CHINA: Central Bank Withdraws CNY39bn via OMO
The PBOC kicked off the week with a modest injection yesterday ahead of a light maturity profile for 7-day repos, following the withdrawal of over CNY800bn last week. However today the OMO sees a move back to modest withdrawal despite signs that repo rates are trying to move higher.
- The PBOC issued CNY117.3bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY156.3bn.
- Net liquidity withdraws CNY39bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.44%.
- The China overnight interbank repo rate is at 1.32%, from the prior close of 1.20%.
- The China 7-day interbank repo rate is at 1.43%, from the prior close of 1.46%.
MNI: CHINA PBOC CONDUCTS CNY117.3 BLN VIA 7-DAY REVERSE REPO TUES
- CHINA PBOC CONDUCTS CNY117.3 BLN VIA 7-DAY REVERSE REPO TUES
