This paper examines from various angles foreign investors' daily transactions in six emerging Asian equity markets and their relationship with local market returns and exchange rate changes over the period 1999-2006. Confirming much of the literature, we find that equity market returns matter...

Intro -- Contents -- I. INTRODUCTION -- II. TRENDS IN INTERNATIONAL FINANCIAL INTEGRATION -- III. EXTERNAL ASSET DYNAMICS -- IV. EXCHANGE RATES AND THE ADJUSTMENT PROCESS -- V. POLICY IMPLICATIONS -- VI. CONCLUDING REMARKS -- References -- APPENDIX I.