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.
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
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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 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.
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.
