Analysis-Australia's stocks shine as global money seeks US alternatives

SINGAPORE (Reuters) - Foreign investors person been turning to Australia's domestically focused stocks, choosing an often overlooked marketplace arsenic a trade-war hideout with a inexpensive currency and resilient economy.

It is hard to quantify conscionable however overmuch superior has gone Down Under, since Australia's banal speech does not people timely flows data. But it has showed up successful stock registries.

The ASX 200 is among the developed world's top-performing marketplace benchmarks since Donald Trump's "Liberation Day" tariff announcement connected April 2, rising 3.1% and beaten lone by Germany's DAX.

The summation successful U.S. dollar presumption is much than treble that if the greenback's declines implicit that clip are taken into account.

Money is besides arriving astatine a clip erstwhile planetary allocators are looking for alternatives to U.S. stocks and shows a comparatively antithetic bid for domestic-focused companies up of the planetary miners that offshore buyers person historically favoured.

"We person seen an uptick ... successful planetary money managers trading into Australia," said Clinton Wong, managing manager astatine UBS successful Sydney who oversees Australia and New Zealand equities.

He declined to quantify the travel oregon picture buyers successful detail, but said imaginable reasons were that Australia is simply a ample and liquid marketplace with a comparatively debased deed of 10% U.S. tariffs.

"We person galore home Australian companies that person nary export concern that tally disconnected the spot of the economy. And the system is strong," helium said.

A Macquarie investigation of quarterly stock registry information showed planetary investors buying adjacent earlier Trump's tariffs, scooping up A$800 cardinal successful slope stocks - mostly National Australia Bank - implicit the archetypal 4th of 2025.

That extended into April, according to Macquarie's ain travel figures, the concern bank's analysts said successful a enactment past month.

"Indeed, our information suggests that offshore investors accrued their cumulative nett buying of financials by astir 23% since 'Liberation Day,'" they said.

Fund flows person besides spiked into Sweden, a bellwether for flows into Europe, and foreigners person been buyers successful Japan.

Morgan Stanley past period upgraded its recommended allocation to Australia from underweight to adjacent weight, noting the market's antiaircraft entreaty and expanding its weightings for banks and user stocks.

It is not wide precisely which non-financial stocks foreigners person bought, but grocer Coles - insulated against tariffs - is up 18% year-to-date and telecom steadfast Telstra is up 14% against a level broader market.