May 3 (Reuters) – Global equity funds experienced renewed interest from investors in the seven days through May 1, buoyed by a surge in inflows to Asia amid optimism about an economic recovery in the region, particularly in China.
Investors secured a net $4.86 billion worth of global equity funds during the week, marking their first weekly net buying since March 27, data from LSEG showed.
Regionally, Asian equity funds attracted a net $5.68 billion, marking the largest weekly inflow since March 27. Meanwhile, investors put $4.46 billion into European funds and withdrew $5.48 billion from U.S. funds.
Federal Reserve Chair Jerome Powell kept rates steady on Wednesday, indicating future rate cuts may be delayed due to persistent inflation.
“The delay in Fed cuts is likely to postpone rate cuts in Asian markets, but that does not derail an ongoing Asian export, industrial, and real growth recovery, thanks to a supportive U.S. economy and improving Chinese growth,” said Mark Haefele, chief investment officer of global wealth management at UBS.
“We see several areas of dip-buying opportunities in the region that investors can consider despite a return in market volatility.”
Source: REUTER
