SINGAPORE: Overseas investors turned net buyers of Asian equities in April for the first time this year, helped by signs of economic recovery, with the region posting a strong rebound in manufacturing activity and exports.

The inflows, however, were modest as investors maintained a cautious stance amid risks thrown up by the coronavirus pandemic.

Foreigners were net buyers of a combined total of $367 million in South Korean, Taiwanese, Philippine, Thai, Vietnamese, Indonesian and Indian stocks last month, data from stock exchanges showed. That compares with an average monthly inflow of $3.7 billion in the second half of last year.

South Korea, Taiwan, Indonesia, and Vietnam showed a rise in their manufacturing activity in April, helped by a surge in overseas demand for their goods, with developed economies making a fast recovery from the pandemic fallout. Taiwanese equities led the region, with inflows worth $1.9 billion in April, with the economy posting its highest quarterly growth in more than a decade as demand for its tech exports surged.

“Taiwan’s inflows can be attributed to several factors, including a weakening US dollar, strong export orders and industrial production growth,” Margaret Yang, strategist at DailyFX said.

Indonesia and South Korea received inflows last month worth $90 million and $65 million, respectively.

However, Indian equities faced outflows worth $1.3 billion, with the country facing the world’s biggest surge in coronavirus cases.

India’s daily cases rose by a record high of 382,315 and its death toll also touched a high of 3,780 on Wednesday, raising more pressure on its government to impose a national lockdown. Meanwhile, foreigners also sold Philippine shares for the 18th consecutive month in April, as a two-week lockdown in Manila and some other provinces hit its economic activity.