Why is foreign Inflows coming in Asia market?

The worldwide equity market ended in red a week following the geopolitical concern created with the Russia-Ukraine conflict but foreign inflows continue to pour in Asia markets.

The FBMKLCI decreased by -0.71% in tandem with global market.U.S. consumer confidence fell in February to the lowest since September as expectations for growth and financial prospects softened amid decades-high inflation.

Americans became less optimistic in Feb-22 as the US Conference Board consumer confidence index slipped to 110.5 (Jan-22: 111.1), slightly above the market consensus (110).

Taiwan’s factory activities improved in Jan-22 as the growth in the industrial production index climbed to +10%yoy (Dec-21: +8.7%yoy).

Hong Kong foreign Inflows

The output in manufacturing sectors expanded steadily while production in the utility sector grew marginally during the month.Hong Kong registered a trade surplus of HKD6.6b in Jan22 (Dec-21: -HKD32.8b), as the decline in monthly imports (-13.3%mom) outpaced that of exports (-6.1%mom).

The city recorded a surplus for the first time since Jan-09.The FBM KLCI decreased by -0.71% for the week to settle at 1,591.72 points.

As for the Ringgit, it saw a weekly depreciation by circa 0.39% against the US dollar to close at USD/MYR 4.2023 last Friday.

The Brent crude oil price saw a +4.69% weekly movement last week, to close at USD97.93/b last Friday.

The Brent crude prices had been high but unstable prior to the Russian invasion on Ukraine, prompting a volatile energy market. – MIDF