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Foreign Investors Drained $40 Billion From Emerging Asia Last Quarter, and It Could Get Worse

  • Taiwan, South Korea, India saw biggest outflows last quarter
  • Investors will remain wary given current backdrop, abdrn says
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Some of Asia’s biggest stock and bond markets outside China are seeing greater outflows than in previous market crises, and the process may just be getting underway.

Global funds offloaded a net $40 billion of equities across seven regional markets last quarter, exceeding any three-month period characterized by systemic stresses since 2007. The steepest selling was in tech-heavy Taiwan and South Korea and energy-importing India, while foreign investors also made supersized outflows from Indonesian bonds.