ASIA STOCKS: Tech Related Inflows Firm To Start The Week, But Will They Sustain?
Yesterday saw a return to positive offshore inflow momentum for both South Korea and Taiwan. However, it remains to be seen if these recovery trends continue. Overnight tech equity weakness continued in US markets with the SOX down a further 1.55%, while the MSCI IT lost 1.44%. The technical set up for both indices doesn't look favourable, as we await Nvidia earnings (due Wednesday). Both South Korea and Taiwan net outflows have been sizable in Nov to date (more than $6bn) and both markets are back to YTD outflows, see the table below.
- For South Korea so far today, the Kospi is tracking weaker. We were last off around 1.55%, which is close to session lows, but we are still above 4000 at this stage.
- Elsewhere, the see-saw pattern of Indian flows continued, leaving last week with a modest net outflow bias. Local equities are back close to recent highs, while Indian officials stated late on Monday the US trade deal is being close to concluded.
- In South East Asia, Indonesia inflows remain positive, with YTD outflows now at just -$2bn. Tomorrow we get the BI outcome, although the consensus doesn't expect a change.
- In the Philippines, yesterday's surge in local stocks (albeit from depressed levels) didn't induce any strong offshore buying inflows.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2025 To Date | |
| South Korea (USDmn) | 326 | -940 | -2702 |
| Taiwan (USDmn) | 248 | -2420 | -1407 |
| India (USDmn)* | -525 | -668 | -16556 |
| Indonesia (USDmn) | 42 | 247 | -2046 |
| Thailand (USDmn) | 53 | -118 | -3207 |
| Malaysia (USDmn) | 4 | 105 | -4290 |
| Philippines (USDmn) | -3 | 0 | -673 |
| Total (USDmn) | 145 | -3795 | -30880 |
| * Data Up To Nov 14 |
Source: Bloomberg Finance L.P./MNI
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LOOK AHEAD: US Week Ahead Headlined By Delayed CPI Report On Friday
- The September US CPI report will be released on Friday, delayed amidst the government shutdown but with the BLS making a special exception on social security payment considerations.
- Bloomberg consensus looks for headline CPI inflation at a rounded 0.4% M/M after 0.38% back in August and for Y/Y inflation to firm two tenths to 3.1% for what would be its highest since May 2024.
- Core inflation is seen at a rounded 0.3% M/M after 0.35% in August (exceeding the median unrounded estimate of 0.31%) and 0.32% in July. It’s expected to see core CPI inflation hold at 3.1% Y/Y having in August increased to its highest since February.
- Core details should see focus on both goods and services angles: underlying goods inflation has clearly firmed in recent months on tariff pressures although the median increase has currently seen a peak back in June, whilst services will be watched for any spillover after some strong recent non-housing readings.
- The report will come within the FOMC blackout period ahead of the Oct 28-29 decision, with a 25bp cut fully priced and likely needing a large surprise to alter this.
- As for broader inflation details, Fed Chair Powell this week confusingly suggested that we will have the September PPI report but the BLS had previously said “No other releases will be rescheduled or produced until the resumption of regular government services”.
US DATA: Latest Jobless Claims Estimates During The Shutdown
As noted earlier, MNI estimates initial jobless claims at a seasonally adjusted 218k in the week to Oct 11 and continuing claims at a seasonally adjusted 1929k in the week to Oct 4.
- To give a better idea of sensitivity around these estimates, which rely on estimates for some missing states, we note the below analyst estimates:
- Goldman Sachs have a central estimate of 217k for initial claims in a range of 211-225k, whilst they see continuing claims at 1917k in a range of 1885-1930k.
- JPMorgan meanwhile also see 217k for initial claims whilst they see continuing claims as having held constant at 1927k.
NATGAS: Venture Global in Talks with Ukraine for more LNG Deliveries, Reuters
Ukraine is seeking more cargoes from Venture’s Plaquemines facility as the embattled nation approaches the winter heating season, according to Reuters sources
- Venture is in talks with Ukraine’s DTEK to procure more LNG cargoes after a year of gas infrastructure attacks by the Russians.
- Venture Global CEO Michael Sabel met with President Volodymyr Zelenskiy on Thursday October 16.
- DTEK signed an agreement in 2024 for an undisclosed amount of LNG from the facility, as well as 2 mtpa from Calcasieu Pass Phase 2 currently under construction.
- Plaquemines currently has spare capacity to deliver more cargoes to Ukraine on the spot market, per Reuters.
- Plaquemines now sends out the second highest LNG volume in the US, with feedgas demand averaging 3.45 bcf/d according to MNI figures.
