<p class="title">Foreign flows into Asian equities turned positive in 2019 due to diminished fears about a Sino-U.S. trade war and a fall in U.S. interest rates, and analysts expect a recovery in regional economies to help keep the inflows coming in 2020.</p>.<p class="bodytext">Overseas investors purchased a net $23.47 billion worth of regional equities in 2019, the highest since 2016, data from stock exchanges in India, Indonesia, the Philippines, South Korea, Taiwan, Thailand, and Vietnam showed.</p>.<p class="bodytext">"Concerns had simmered through the year over geopolitics such as U.S.-China trade and Brexit issues, alongside economic growth concerns," said Jingyi Pan, a Singapore-based market strategist with financial services firm IG.</p>.<p class="bodytext">"That said, for investors hunting for returns, riskier assets nevertheless remained in favour."</p>.<p class="bodytext">Indian equities led the region with net foreign inflows of $14.7 billion last year, the highest since 2014. Taiwan and Indonesia also drew foreign funds totalling about $6 billion and $3.5 billion respectively.</p>.<p class="bodytext">DBS bank said that the Indian government's removal of tax surcharges on foreign portfolio investors and the outperformance of domestic equities helped fuel inflows last year.</p>.<p class="bodytext">Thailand and Philippines, meantime, registered small outflows in 2019.</p>.<p class="bodytext">Foreign buying of regional stocks totalled $2.92 billion in December. During the month China and United States agreed on a preliminary trade deal that is expected to be signed on Jan. 15.</p>.<p class="bodytext">Goldman Sachs said foreign investors "net bought only half of the US$50bn peak-to-trough outflows of 2018 and cumulative FII flows are tracking more than US$40bn below the long-term trend, suggesting room to recover further." MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4% so far this year, after securing 16.3% gains in 2019. "Going into 2020 on a relatively good note for the outstanding issues from 2019 - including the U.S.-China trade (deal) -Asian equities are expected to continue seeing steady foreign inflows," said IG's Pan.</p>.<p class="bodytext">"A modest recovery for most Asian economies is expected from 2019 that should keep the outlook positive for the region," Pan said.</p>
<p class="title">Foreign flows into Asian equities turned positive in 2019 due to diminished fears about a Sino-U.S. trade war and a fall in U.S. interest rates, and analysts expect a recovery in regional economies to help keep the inflows coming in 2020.</p>.<p class="bodytext">Overseas investors purchased a net $23.47 billion worth of regional equities in 2019, the highest since 2016, data from stock exchanges in India, Indonesia, the Philippines, South Korea, Taiwan, Thailand, and Vietnam showed.</p>.<p class="bodytext">"Concerns had simmered through the year over geopolitics such as U.S.-China trade and Brexit issues, alongside economic growth concerns," said Jingyi Pan, a Singapore-based market strategist with financial services firm IG.</p>.<p class="bodytext">"That said, for investors hunting for returns, riskier assets nevertheless remained in favour."</p>.<p class="bodytext">Indian equities led the region with net foreign inflows of $14.7 billion last year, the highest since 2014. Taiwan and Indonesia also drew foreign funds totalling about $6 billion and $3.5 billion respectively.</p>.<p class="bodytext">DBS bank said that the Indian government's removal of tax surcharges on foreign portfolio investors and the outperformance of domestic equities helped fuel inflows last year.</p>.<p class="bodytext">Thailand and Philippines, meantime, registered small outflows in 2019.</p>.<p class="bodytext">Foreign buying of regional stocks totalled $2.92 billion in December. During the month China and United States agreed on a preliminary trade deal that is expected to be signed on Jan. 15.</p>.<p class="bodytext">Goldman Sachs said foreign investors "net bought only half of the US$50bn peak-to-trough outflows of 2018 and cumulative FII flows are tracking more than US$40bn below the long-term trend, suggesting room to recover further." MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4% so far this year, after securing 16.3% gains in 2019. "Going into 2020 on a relatively good note for the outstanding issues from 2019 - including the U.S.-China trade (deal) -Asian equities are expected to continue seeing steady foreign inflows," said IG's Pan.</p>.<p class="bodytext">"A modest recovery for most Asian economies is expected from 2019 that should keep the outlook positive for the region," Pan said.</p>