Asian stock market announces a large influx of investments
2022.12.06 02:07
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Asian stock market announces a large influx of investments
Budrigannews.com – In the hope that the U.S. Federal Reserve might slow down the rate at which it raises interest rates, foreign net monthly inflows into Asian stocks reached their highest level in two years in November.
Additionally, sentiment was lifted by expectations that China would gradually loosen its zero-COVID policy and open up its economy.
Foreign investors bought stocks worth a net $15.18 billion in November, the most since November 2020, according to data from stock exchanges in Taiwan, India, the Philippines, Vietnam, Thailand, Indonesia, and South Korea.
Asian stocks receive monthly flows of foreign investment The minutes of the most recent Federal Reserve policy meeting demonstrated that the majority of policymakers recognized the need for a slowdown in rate hikes in order to combat the downward trend in the economy and maintain financial stability.
After being impacted by the Federal Reserve’s aggressive rate hikes earlier this year, the MSCI Asia Pacific index experienced its largest monthly gain in approximately 24 years last month, rising by 14.8%.
The most foreign inflows into Taiwanese stocks since 2008 totaled $6.06 billion last month, while India and South Korea received $4.43 billion and $3.04 billion, respectively.
In the meantime, net purchases of $822 million and $683 million were made in Thai and Vietnamese stocks. Last month, Indonesia and the Philippines also saw small net purchases by foreign investors.
Due to the sharp decline in the value of the dollar over the past few weeks, analysts are also optimistic about flows into emerging Asian markets.
This week, bets that the Federal Reserve would slow down the pace of its interest rate hikes after four consecutive 75-basis-point increases pushed the dollar index to a record low of more than five months.
According to IG market strategist Yeap Jun Rong, “the remains locked in a downward bias, which could continue to provide a supportive environment for foreign inflows into Asian equities towards year-end.”
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