Institutional Investor confidence surged in September, driven by appetite for Asia

Photo by China Photos/Getty Images

While investors in North America and Europe remain more pessimistic than optimistic, there is a clear move of money back into Asian markets according to the latest release of the State Street Global Exchange Investor Confidence Index (ICI).

The ICI, which tracks real money flows and the buying and selling of institutional investors to generate a measure of confidence, showed that while the global ICI surged 5.8 points to 95.5, the move into Asia was a big driver of this improvement.

State Street said that sentiment was driven by an increase in the Asian ICI from 105.9 to 118.6. North American investors were also more positive with the region’s ICI rising from 89.6 to 92.3. But Europe remains the laggard with its ICI dropping from 86.8 to 84.9.

Jessica Donohue, executive VP and chief innovation officer at State Street Global Exchange, summed up the different outlooks between Europe and Asia as being driven by divergent policy approaches and results.

“Regionally, inaction by the European Central Bank has prompted stock market volatility and has dented European sentiment even further,” she said.

“Meanwhile, investors are more optimistic on Asia, likely encouraged by continued policy support in China.”

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