Emerging Market Asia foreign portfolio inflow returns in October

SINGAPORE - Receding geopolitical risks and improving global growth prospects saw a return of foreign portfolio inflows into Asia in October. However, the inflows were primarily concentrated in equities, with South Korea and Taiwan the primary beneficiaries of foreign buying.

ANZ Bank says foreign outflows from the debt market were recorded for the first time this year. India was a standout, attracting strong debt inflows. Demand for China bonds also remained robust.

Portfolio flows look set to be influenced by two contrasting forces, ANZ says, with gradual policy normalisation in the advanced economies acting as a drag, but offset by the improving global outlook. www.live.anz.com (ATI).