ASIA STOCKS: Tech Equity Headwinds Hurt South Korea Flows, Indian Inflows Rise
Yesterday saw mixed flows for the tech sensitive plays in terms of South Korea and Taiwan. We still saw decent selling in South Korea, despite a further rise in the Kospi to fresh highs. Global tech concerns may be a headwind though, given South Korean tech bellwethers like Samsung etc, are often popular with offshore investors. The figure below the table plots the MSCI IT index versus key EMAs. On Wednesday we challenged the 200-day support point, which was the first such occurrence since May last year. Broader concerns around the AI/chip tech outlook, amidst high valuations, is weighing on sentiment in this space. Still, Taiwan flows, while negative for the past 5 days remain modestly positive for 2026 to date.
- In India, Tuesday delivered strong inflows as markets reacted to the US-India tariff news. Follow up gains in Indian equities has been modest though, as markets await more details around the trade deal.
- Indonesia continues to struggle from a flow standpoint, although the local authorities insist that domestic fundamentals remain sound. Note we get Q4 GDP later today.
- In Other parts of South East Asia, inflow momentum is mixed in the past week, but positive year to date.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2026 To Date | |
| South Korea (USDmn) | -643 | -4035 | -1226 |
| Taiwan (USDmn) | 446 | -1860 | 1208 |
| India (USDmn)* | 836 | 1501 | 2546 |
| Indonesia (USDmn) | -85 | -463 | -685 |
| Thailand (USDmn) | 68 | -2 | 248 |
| Malaysia (USDmn) | -7 | -35 | 253 |
| Philippines (USDmn) | 5 | 7 | 239 |
| Total (USDmn) | 621 | -4886 | 2584 |
| * Data Up To Feb 3 |
Source: Bloomberg Finance L.P./MNI
Fig 1: MSCI IT Index Versus Key EMAs
Source: Bloomberg Finance L.P./MNI
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGB TECHS: (H6) Shallow Bounce Off Lows
- RES 3: 140.08 - High Jun 13
- RES 2: 139.05 - High Aug 4
- RES 1: 137.30 - High Sep 8 and key short-term resistance
- PRICE: 132.11 @ 16:55 GMT Jan 5
- SUP 1: 132.03 2.0% Lower Bollinger Band
- SUP 2: 131.87 - Low Jan 5
- SUP 3: 131.22 - 1.0% 10-dma envelope
Prices traded to new pullback and cycle lows again Monday, weighed by building expectations of a BoJ rate hike cycle and a breach of support in futures prices. This affirms the firm downtrend that’s dominated prices since mid-September, and prices will need to challenge resistance before signaling any broader reversal.
PRECIOUS METALS: Geopolitical Uncertainty & Soft US ISM Drive Prices Higher
Increased geopolitical uncertainty driven by the US’ ousting of Venezuela’s Maduro boosted gold and silver on Monday. The US appears to be supporting the current regime though under Maduro ally Rodriguez in line with CIA recommendations, according to the WSJ. The softer December US manufacturing ISM added to the uptrend, which drove the US dollar (BBDXY -0.1%) and 2-year yields lower.
- Gold rose 2.7% to $4449.15/oz on Monday, close to the intraday high at $4455.64. It is currently around $4449.40 holding above resistance at $4430.8, 23 December low, and opening the bull trigger at $4549.9. Technicals continue to signal that it is overbought. Initial support is at $4274.7, 31 December low.
- Silver was up 5.2% to $76.588 off the intraday high at $77.868. While last Monday’s correction is unwinding, prices are still 3.4% below 26 December. The trend is also still overbought and initial support is at $70.071, 31 December low. The bull trigger is at $84.008, 29 December high. The metal has started Tuesday slightly lower at $76.25.
- The US December manufacturing ISM was weaker than expected moderating to 47.9 from 48.2 with both new orders and employment contracting but at a slower pace than in November.
- Equities rallied with the S&P up 0.6% and Euro Stoxx +1.25% and the S&P e-mini is currently slightly higher. Copper and silver rose 5.2% while iron ore is steady around $105.50/t. Oil prices were stronger with Brent +1.8% to $61.84/bbl.
AUSSIE 10-YEAR TECHS: (H6) Marked Lower
- RES 3: 95.982 - 76.4% retracement Sep’24 - Nov’24 downleg
- RES 2: 95.960 - High Apr 7 (cont.)
- RES 1: 95.900 - High Oct 17
- PRICE: 95.165 @ 16:54 GMT Jan 5
- SUP 1: 95.120 - Low Dec 10
- SUP 2: 95.087 - 2.0% Lower Bollinger Band
- SUP 3: 94.276 - 1.0% 10-dma envelope
Aussie 10-yr futures remain well toward the bottom of the recent range, having taken out all major support levels in the process. With 95.275 cleared, prices are pushing to new contract lows, opening vol-band support through 95.087 and into 94.276. Any recoveries need to break back above 95.900 to signal near-term bullish traction.
