Khoon Goh, analyst at ANZ, points out that the news of the US and China 'phase one' trade deal boosted investor sentiment in December, but it did not result in broad-based foreign portfolio inflows into Asia ex-China.

"Equities benefited, with inflows recorded for the fourth consecutive month. But bonds saw outflows for the first time in eight months. For calendar year 2019, portfolio inflows totalled USD48.5bn, more than recouping the USD26.2bn of outflows seen in 2018. The US-China trade conflict may have faded as a headwind as we start 2020, but this is being replaced by US-Iran geopolitical tensions."