JavaScript is off. Please enable to view full site.

Overseas investors turn net sellers of Asian equities in November

Wednesday, December 11, 2019, 10:21 GMT+7
Overseas investors turn net sellers of Asian equities in November
An investor points to screen of at a Securities Company in Vietnam's southern Ho Chi Minh city, August 25, 2015. Photo: Reuters

Foreigners turned net sellers of Asian equities in November amid mixed signals on whether the United States and China were getting closer to reaching a preliminary trade deal.

Overseas investors sold $4.3 billion worth of regional equities in the last month, after two successive months of buying, data from stock exchanges in South Korea, Taiwan, Thailand, Philippines, Indonesia and Vietnam showed.

“I see it as a mixture of profit booking and also cautiousness in November given the event risks into the end of the year,” said Jingyi Pan, a Singapore-based market strategist with financial services firm IG.

Washington’s next round of tariffs against $156 billion worth of Chinese goods are scheduled to take effect on Dec. 15.

South Korea led the regional outflows with foreign sales of about $3 billion in November, the biggest in 13 months, mostly driven by its weak exports. The fourth-largest Asian economy faced 12th straight month of contraction in exports, November month’s preliminary exports data showed.

Indonesian equities saw about $500 million worth of foreign outflows, while Taiwan witnessed overseas sales of $318 million last month.

However, Indian equities received foreign money of $3.54 billion in November, helped by the central bank’s monetary stimulus measures and the corporate tax cut announced in September.

Refinitiv data showed Indian firms are expected to lead Asia with earnings growth of 36% in 2020, followed by South Korea and Vietnam.

Going forward, market participants are wary that Sino-U.S. trade tension could escalate further, if Trump goes ahead with the planned tariffs this weekend.

“We have seen Asia equities picking up at the start of the month (December) on trade hopes, but a lot hinges on whether we will see an interim trade deal ahead of the Sunday deadline for this optimism to carry on,” IG’s Pan said.



Read more




Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news