MONEY MASTER

Global investors are  rotating back into Chinese equities , with April inflows hitting their highest level in months as sentiment improves on the back of  AI-driven optimism and stabilising geopolitical concerns . Strong Foreign Inflows Signal Renewed Interest Foreign investors poured approximately  200 billion yuan (US$29 billion)  into mainland equities in April, which is the  largest inflow since January . The data suggests a  clear rebound in overseas appetite , following earlier outflows triggered by the Iran war. Proxy Data Highlights Capital Movement With limited official disclosure on direct flows, analysts rely on  cross-border investment balance data  to estimate foreign participation. This method strips out: Bond flows Trading link transactions Institutional reallocations Leaving a  reliable proxy for foreign equity inflows into China . AI Rally Drives Market Performance The rebound in flows coincided with a strong equity rally: CS...

South Korea’s stock market rally could gain fresh momentum as  US retail investors get direct access , opening the door for new capital inflows into one of the world’s top-performing markets. Korea Market Attracts Global Attention South Korean equities have become one of the hottest trades globally: Kospi Index up over 75% in 2026 Now among the  world’s best-performing major markets Recently became the  7th largest stock market globally This surge has been driven largely by  AI-related demand and strong industrial sectors . New Catalyst: US Retail Money Interactive Brokers  is enabling direct trading access to Korean stocks for global clients. This means: US investors can now  buy Korean stocks directly No need to rely on  ETFs or ADRs Faster access with  real-time execution Key Impact: More liquidity and stronger inflows into Korean equities AI and Chip Stocks Lead the Rally The market’s strength is heavily supported by tech giants: Samsung Elect...

Malaysia may face its  highest inflation in nearly two years , as rising input costs begin filtering through to consumers, driven by  elevated energy and logistics expenses  linked to ongoing Middle East tensions. Cost Pressures Set to Hit Consumers Economists warn that businesses are reaching the limit of absorbing higher costs and may soon  pass them on to consumers . Firms had relied on  cheaper pre-war inventory Margin pressures are now  intensifying Inflation could  accelerate between May and July Malaysia’s  consumption-driven economy (~60%)  makes it particularly sensitive to such cost pass-through effects. Producer Prices Signal Rising Inflation Early warning signs are emerging from wholesale prices: Producer Price Index (PPI): +1% YoY (March) +4.1% MoM , the largest jump in over 20 years This reflects rising costs across key inputs: Energy (oil, electricity) Agricultural inputs (fertiliser, diesel) Logistics disruptions via the Strai...

Asian markets are increasingly moving in  two different directions , as the  AI-driven tech rally in North Asia  contrasts sharply with  oil-driven weakness in South and Southeast Asia . AI Powerhouses Drive North Asia to Record Highs Markets in North Asia continue to outperform, supported by  strong semiconductor demand and AI momentum . Key benchmarks: Taiex   +~10% since the war began Kospi   +~4% Nikkei 225  trending higher This rally is led by chip giants such as: Taiwan Semiconductor Manufacturing Co Samsung Electronics SK hynix These firms are deeply embedded in the  global AI supply chain , attracting sustained investor inflows despite geopolitical risks. South & Southeast Asia Struggle Under Oil Pressure In contrast, markets in South and Southeast Asia are underperforming: Nifty 50   -~5% MSCI ASEAN Index   -~7% Philippines & Indonesia indices  -10%+ The weakness reflects: Rising oil prices  increasing imp...

Malaysia must take  urgent steps to strengthen its large-cap stock base  and expand into  higher-growth sectors , as the country risks losing visibility among global investors, according to the  Securities Commission Malaysia . Declining Global Relevance Raises Concerns The SC warned that Malaysia’s  shrinking weight in global indices  — particularly the  MSCI Emerging Markets Index  — could lead to: Reduced passive fund inflows Lower  market liquidity and visibility This decline reflects stronger growth from regional peers such as China, Taiwan, India, and South Korea, which now command a larger share of global capital. IPO Boom Fails to Lift Market Depth Despite a strong IPO pipeline in 2025, most listings were: Small-cap companies Concentrated in  industrial and consumer sectors This has limited: Market diversification Availability of  investable large-cap names  for institutional investors As a result, Malaysia continues to...

Emerging markets suffered a sharp reversal in capital flows in March, with investors pulling out  US$70.3 billion , marking the  largest outflow since the Covid-19 market crash in 2020 . Massive Equity Selloff Led by Asia Data from the  Institute of International Finance  showed that  equities accounted for the bulk of the outflows , with  US$56 billion withdrawn  — the largest equity exodus in at least two decades. The selloff was heavily concentrated in  emerging Asia , which absorbed most of the equity withdrawals following strong inflows earlier in the year. This reversal represents a  “sharp regime break” , triggered by geopolitical shocks linked to the  Iran conflict . Oil Shock and Tech Repositioning Drive Risk-Off Shift The outflows were driven by a combination of factors: Oil prices surged ~50% to above US$100 , raising inflation concerns Investors reduced exposure to  technology-linked equities , a key driver of Asian mark...

Maybank Research has downgraded its outlook for Southeast Asia, warning that  rising energy prices and supply disruptions  linked to Middle East tensions are triggering a  stagflationary shock  across the region. Growth Forecasts Lowered Across ASEAN-6 The research house now expects  ASEAN-6 GDP growth at 4.5% in 2026 and 4.7% in 2027 , down from previous forecasts of 4.8%. The biggest downgrades were seen in: Philippines and Vietnam (-0.4ppt) Thailand (-0.3ppt) The revisions reflect the growing impact of  higher energy costs and supply chain disruptions  on economic activity. Inflation Pressures Intensify At the same time, inflation forecasts have been revised upward: 2026 inflation: 2.7% (vs 2.2% previously) 2027 inflation: 2.7% (vs 2.5%) The largest inflation increases are expected in  Thailand, the Philippines, and Indonesia , driven by higher fuel and commodity prices. Monetary Policy Shift: Easing Cycle Disrupted The energy shock is expected...

Emerging Asian equities advanced on Wednesday, led by strong gains in  South Korea and Taiwan’s technology sectors , as easing oil prices and optimism around artificial intelligence (AI) helped improve investor sentiment ahead of the  US Federal Reserve’s policy decision . Tech Stocks Drive Regional Gains Markets in  South Korea surged up to 4% , reaching their highest level since early March, while  Taiwan equities rose 1.7% , hitting a two-week high. The rally in these tech-heavy markets lifted the  MSCI Emerging Asia Index by 1.6% , as investors rotated back into  AI and semiconductor stocks , where earnings visibility remains strong. According to BNP Paribas Asset Management,  AI-driven demand and semiconductor strength  continue to underpin the region’s equity outlook despite broader uncertainties. ASEAN Markets Follow Higher The positive momentum extended across Southeast Asia: Singapore, Malaysia, and Thailand markets rose around 1% The...

Ghana’s central bank is expected to  continue its monetary easing cycle , even as rising global energy prices from the Middle East conflict complicate the inflation outlook. Rate Cut Likely as Inflation Hits Multi-Decade Low Analysts surveyed expect the  Bank of Ghana to cut interest rates by 100 basis points to 14.5% , following January’s reduction from 18% to 15.5%. The move is supported by  inflation cooling to 3.3% , its  lowest level in nearly 30 years , giving policymakers room to stimulate the economy. Economists argue that  further easing is needed to support job creation and economic growth , particularly in key sectors of the economy. Energy Prices Pose New Inflation Risk However, the outlook is complicated by the  sharp rise in global oil prices  following the Iran conflict, which began in late February. Higher energy costs could  reignite inflationary pressures , especially for an import-dependent economy like Ghana. As a result, while...

Market Snapshot Indonesia’s sovereign credit outlook has come under pressure after  Fitch Ratings revised the country’s outlook to “negative” from “stable” , citing rising  policy uncertainty and weakening confidence in the government’s economic framework . Despite the outlook downgrade, Fitch  maintained Indonesia’s credit rating at the second-lowest investment grade level , meaning the country remains investment grade for now. However, a  negative outlook signals that a future downgrade is possible  if fiscal and policy risks intensify. The move follows a similar action by  Moody’s , which also revised Indonesia’s outlook downward earlier this year. Together, the decisions have raised  fresh concerns among global investors about the policy direction of Southeast Asia’s largest economy . What’s Driving the Outlook Downgrade 1. Rising Policy Uncertainty Fitch highlighted  increasing centralisation of policymaking authority  as a key factor be...

Indonesia’s central bank has stepped up monitoring of financial markets as geopolitical escalation in the Middle East triggers renewed risk-off flows across emerging markets. The rupiah weakened as much as 0.45% to 16,835 per US dollar during Monday trading. What Bank Indonesia Said Bank Indonesia  said it will: Closely monitor market movements Ensure the rupiah moves in line with fundamentals Remain active in the foreign exchange market Improve effectiveness of interest-rate policy transmission Interventions will include: Spot market operations Onshore non-deliverable forwards (NDF) Offshore NDF transactions The move comes after escalation following the US attack on Iran triggered global risk aversion. Money Master Take This is a pre-emptive credibility defence, not a panic response. 1. Central Bank Is Signalling Presence Early By announcing readiness to intervene: Bank Indonesia is anchoring expectations It is discouraging speculative attacks It is limiting disorderly currency mo...