Korea, India continue to see foreign selling this week; EM/Asia Mutual funds close 1% lower in September (+24-25% ytd); HFs net sell Asian equities for the fourth consecutive month

Korea, India continue to see foreign selling this week; EM/Asia Mutual funds close 1% lower in September (+24-25% ytd); HFs net sell Asian equities for the fourth consecutive month. EM Asia ex-China markets saw foreign net selling of US$10.3bn w/w, driven by Korea and India. Non-Asia EMs saw modest net selling of US$180mn w/w, led by UAE. Southbound saw modest inflows in a shortened trading week; Taiwan saw retail selling while Korea saw buying, and Ytd Asian markets have seen net southbound inflows. Equity funds globally saw outflows, with DM led by US outflows while Europe and Japan saw net inflows; EM fund outflows moderated w/w. In September, EM and Asia mutual funds fell by ~1% (Ytd: +24-25%), while China funds declined by 5% (Ytd: +1%);