LIVE MARKETS-Asian retail investors favouring domestic markets over US

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ASIAN RETAIL INVESTORS FAVOURING DOMESTIC MARKETS OVER US

Asian retail traders have shifted from buying U.S. equities, to domestic ones in recent weeks, HSBC say in a note on Thursday that pulls together various bits and bobs of local data.

Flows in and out of Asia are in focus at the moment, particularly for currency traders, and while those moves likely have more to do with big institutions and global policy, what's happening with retail is still worth watching.

The trend also holds up across most Asian markets, excluding India, so maybe it's one to keep an eye on, particularly since HSBC note Asian retail investors are traditionally "enthusiastic buyers" of U.S. equities.

Quickly running through the data HSBC cite, they say Korean retail are selling U.S. equities and buying local at the fastest pace in nearly a year.

Local retail are also net buyers of domestic shares in Singapore, Indonesia, Malaysia (where they are crowding out foreigners), and Japan (where they kept buying overseas equities, but at a slower pace).

Mainland Chinese money using the Stock Connect channel also now accounts for a quarter of trading on the Stock Exchange of Hong Kong.

The exception is India, where local retail investors have been selling domestic stocks.

(Alun John)

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