Major Asian equity markets outside of China are witnessing increased investment from foreign investors at the fastest pace in seven years in this quarter as Coronavirus vaccine success reduced global risk. India stands second with $9.2 billion.
Nine regional stock markets have lured a combined investment of about $48 billion since October 1, the most since the fourth quarter of 2013. Japan is leading the way with $27.4 billion, followed by India at $9.2 billion and South Korea being the third has received $6.4 billion.
Markets include Japan, India, South Korea, Taiwan, Thailand, Indonesia, Malaysia, Philippines and Vietnam. A series of encouraging results from vaccine makers have lent fresh impetus to the Asian equity rally spurred by Joe Biden’s victory in the US presidential election and the signing of a regional trade pact.
In countries, India and South Korea benchmark stock indexes have hit an all-time high this month, while in Japan the Nikkei 225 Stock Average has surged to a 29-year peak amid a rotation into cheap cyclical shares.
The FIIs have invested Rs 53,167 crore (Figures recorded as of November 26) in the Indian markets which is also the highest investment in a single month so far. Post this, the FII’s have turned net positive for the fiscal year 2020 in the domestic market.
Asian shares have thus performed extraordinary this month including Chinese stocks which have helped the region overtake the US in terms of year to date gains. The MSCI Asia Pacific Index is now up 12% in 2020, versus an advance of close to 11% for the S&P 500 Index.