Expect more money to enter into certain Asian markets, including Japan and India, according to a Julius Baer report analyzing fund flows in the region.
Institutional funds have been flowing out of Asian markets in 2023 with the exception of Japan ($23.2 billion), India ($14.1 billion) and South Korea ($5.4 billion).
According to a Julius Baer note, these markets are expected to continue being recipients of fund inflows, in addition to Taiwan. The bank also expects improvements in Asian tech heavyweights, such as Taiwan’s TSMC and South Korea's Samsung, adding that there are «preliminary indications» that such firms have «turned the corner».
«We retain our preference for quality stocks in Japan but would add Japanese banks to obtain exposure to the rising interest rate story in Japan,» said the note authored by Kelly Chia, equity research analyst Asia.
