FX Insights: Foreign Exchange - Asia ex-Japan

Research evidence excerpt

FX Insights

Global Markets Research

19 August 2026

Foreign Exchange - Asia ex-Japan

June TIC data showed continued strong inflows

into US equities and slower inflows into US bonds

Our high-frequency data show that inflows into US equities likely

remained strong in July and August.

• June TIC data recorded another month of strong inflows into US portfolio assets at

USD204.9bn (Q2 2026 average: USD223.8bn; Q1 average: USD83.6bn).

• This was driven by strong net inflows into US equities (USD181.2bn; Q2 average:

+USD141.6bn) despite volatility in US equities with cross-currents from the strongerthan-expected May NFP release, the hawkish June FOMC , SpaceX’s IPO debut and

the US-Iran interim deal .

Research Analysts

Asia FX Strategy

Craig Chan - NSL

Wee Choon Teo - NSL

Vicky Chen - NSL

• Total inflows into US bonds slowed substantially to USD23.7bn (May: USD129.4bn),

with China (-USD17.2bn), the UK (-USD15.4bn), Japan (-USD9.2bn) and the Cayman

Islands (-USD14.7bn; tax haven) substantial net sellers.

• Within G10, the euro area was a significant buyer of US portfolio assets in June at

USD80.9bn, with USD53.2bn and USD27.7bn directed into US equities and bonds,

respectively. Conversely, the UK and Japan were significant sellers of US portfolio

assets at -USD23.6bn and -USD8.8bn, respectively.

• Within AeJ, Singapore was a significant buyer of US portfolio assets in June at

USD29.0bn, while China was a significant seller at -USD15.6bn.

• Our timely high-frequency data show foreign investors continued to net purchase USfocused funds (+USD3.7bn) between 8 and 14 August, with strong inflows into

equities (USD3.5bn) and marginal inflows into bonds (USD247mn).

• In MTD August, US-focused funds garnered USD8.0bn of foreign portfolio inflows,

driven by USD7.6bn of inflows into equities.

• Inflows into EM-focused ETFs accelerated to USD2.8bn between 8 and 14 August, up

from inflows of USD1.9bn in the previous week.

• Korea retail investors’ net purchases of US portfolio assets also slowed substantially

to USD178mn between 11 and 17 August from USD1.6bn in the previous week,

driven by net selling of US equities at -USD294mn.

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