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Emerging markets in Asia saw strong inflows in the second half of August, as bargain buying and improved sentiment around lower interest rates lured investors back, Goldman Sachs said in a note.
Emerging markets in Asia saw inflows of about $6 billion after sales of about $18 billion in the period from late July to early August, GS said.
Over the past week, GS said emerging market Asian equities saw modest inflows of $0.9 billion, with ASEAN, Taiwan and India contributing the bulk of the inflows.
In China, southbound stocks in Hong Kong saw small outflows of $0.2 billion, while the Chinese government stopped releasing flow data for northbound markets in Shanghai and Shenzhen.
Among Asian markets, Chinese stocks have been the worst performers so far this year, with indexes trading at six-month lows amid few signs of improving growth in the country.
Broader Asian markets were also hit hard by a sell-off in early August as regional sentiment was shaken by hawkish signals from the Bank of Japan, as well as growing concerns about a recession in the United States.
But regional markets recovered most of those losses as sentiment improved, while growing confidence in a US interest rate cut also encouraged buying.
Japan has benefited the most from this recovery, seeing positive financial flows in August. Japanese markets have captured $0.9 billion in inflows so far in August, far more than most markets in Asia.
Hong Kong stocks saw the highest volume of inflows in August, at $4.7 billion, according to GS data.
