Net capital flows to Asia turn negative: MAS
NET capital flows to Asia have turned negative, partially reversing the net inflows since 2010, the Monetary Authority of Singapore (MAS) said in its annual Financial Stability Review on Thursday.
According to the report by the central bank's Macroeconomic Surveillance Department, several Asian economies have received substantial financial flows in the past few years as Asian sovereigns and corporates benefited from historically low risk premiums and global volatility.
During the episodes of tapering shocks in late 2013 and early 2014, exits from Asia-10 equities and bonds were driven mainly by retail funds, while institutional funds maintained or even increased holdings, reflecting longer-term optimism over growth prospects in emerging Asia.
"Looking ahead, uncertainty in the timing of interest rate rise in the US is likely to lead to greater volatility in Asian capital flows,'' it said.
"Asia-10'' comprises China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Barclays cuts jobs in energy transition team it only just built
Great Eastern shares jump 39% as OCBC mounts S$1.4 billion privatisation bid at S$25.60 per share
China's central bank vows to support economic recovery
Ping An sells US$50 million of HSBC shares after vote against CEO
Manulife profit beats on growth in Asia, wealth management
Hot stock: UOI surges to over 6-month high amid heavy trading