Trade Performance and Fund Flow Week Ended 12 April 2024

▪ Emerging markets ended on a negative tone, with the MSCI Emerging Index (EM) reversing its net gain position to close -0.4% lower from the previous week. At the country level, performance was mixed with half of the indices under observation closed lower amid ongoing geopolitical tensions in the Middle East and higher-than-expected U.S. inflation data stoked fresh uncertainty about the pace of Federal Reserve rate cuts this year. 

▪ Chinese market moderated with the Shenzhen Composite Index and Shanghai Composite Index dropped -3.4% and -1.6% respectively amid growing concern on China’s growth prospects. Last week, China reported weaker-than-expected exports and imports figures in March alongside slower growth in CPI. On top of that, the United States imposed restrictions on another six Chinese companies, alleging their involvement in acquiring AI chips for China’s military or assisting to procure drones for use by Russia.  

▪ The KOSPI index continued to decline for the third consecutive week by another -1.2% . According to the newsflow, the victory of South Korea’s main opposition party in parliamentary elections on 10 April 2024 sparked uncertainty over the implementation of government’s initiatives, including its proposed “Corporate Value-up Program” aimed at improving shareholder returns. Nonetheless, Korean equities continued to record foreign inflow amounting to +USD1,006.1 mil, driven by growing optimism over demand for memory chips. 

▪ On the other hand, the Taiwan stock exchange recorded the highest gain and advanced 2.0% WoW, following strong-than-expected earning results by TSMC for 1Q2024 which pushed its share price to a record high of TWD820 before it closed lower at TWD818 by the end of the week. 

▪ In Southeast Asia, all stock exchanges closed broadly higher with exception to PCOMP Index and FBMKLCI. The VNINDEX rebounded from its loss and secured the top gain position in the region by closing +1.7% higher.