APAC Equity Selloff Continues

APAC equities continue selling off after US equities rebound overnight, reopening trade and value outperforming growth. Oil prices rose while Bitcoin fell sharply, remaining below the 30,000 marks. APAC equity flows started lighter this morning with net outflow from Japan, China, Korea, Taiwan, Singapore and Thailand. According to a Europen Banks market-making desk in Singapore, " We are seeing active two-way flows in consumer and industrial. Notable buy flow is in Hong Kong financials, China utilities, selective e-commerce names in Korea and Hong Kong. Notable sell flow is in China insurance, Singapore banks, Thai logistics, and Taiwan tech."

Korea Trade Data Stronger

Korea’s 20-day trade data for July came in stronger than expected (exports: 32.8% y/y vs cons. 29.5%, imports: 46.1% vs cons. 29.1%). These are positive outturns for regional global trade in July and come despite the domestic restrictions due to a surge in covid infections. The data should also support the BoK’s recent hawkish pivot. Separately, Japan exports rose 48.6% y/y in June (cons: 46.2%, last: 49.6%).