Sakthi Siva of Credit Suisse says net foreign buying in Emerging Asia ex-China & ex-Malaysia had slowed from an unsustainably high pace of USD 1 billion a day from mid to late July to USD 300 million then. The pace has slowed further to average just USD 18 million over the past four days, she adds.
The key question for investors is whether this pause is one that refreshes or is signalling something more, according to her.
With MSCI Asia ex-Japan up 25 percent from the lows in January, she suggests buying the dips rather than chasing the rallies.
Meanwhile, Chris Wood of CLSA says perhaps, Federal Reserve Chief Janet Yellen will say something to change market perceptions dramatically at the annual Jackson Hole event tonight. But Greed & Fear doubts it, he says.
Wood further says rather the release of the latest Fed minutes last week has highlighted what Greed & Fear has long suspected; namely that there is a fundamental division of opinion within the Fed with Chairwoman Yellen remaining very much on the dovish side of the argument.
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