Late last year it was Thailand, but today it is Japan. While we have been sceptical of Abenomics as our view is that the rise in Japan's ROE was largely driven by the Yen's fall and that ROE is now likely to slow further as Yen heads towards 100 to the USD, Figure 1 highlights that Japan is now the market with the greatest foreign investor capitulation. On our definition of capitulation which is net foreign buying on a rolling 12-month basis, Japan stands at -1.4% versus -0.5% for Korea and Thailand, -0.2% for the Philippines and Indonesia, -0.1% for India and +0.5% for Taiwan. Figure 1 also highlights that Japan's current reading of -1.4% is the second largest episode of foreign investor capitulation after -1.9% in February 2009.

　　Less capitulation in the TIPs. While foreigners are still net sellers of the TIPs (Thailand, Indonesia, the Philippines) on a rolling 12-month basis, there is significantly less capitulation compared with late 2015. For Thailand, net foreign buying has moved from -1.3% of market cap on 31 December 2015 to just -0.5% currently. For Indonesia, the move is from -1% on 30 November 2015 to -0.2% currently. See Figures 5-7.

　　Emerging Asia ex-China ex-Malaysia now -0.1%. On a rolling 12-month basis, net foreign buying in Emerging Asia ex-China ex-Malaysia is -0.1%.