💱UBS: FX Implications Of August MSCI Rebalance

The August MSCI rebalance will become effective after the close on Aug. 31. The largest net inflows will come from China, Singapore and the US, while the largest net outflows will come from Japan, Denmark and Taiwan. Notably, the majority of markets appear to be a net sell. For Asia FX, this means inflows of $1,326 mn in HKD and $583 mn in CNY, and outflows of $42 mn in IDR, $173 mn in THB, $190 mn in INR, $344 mn in KRW, and $430 mn in TWD.