Asian equities witness large outflows for last four months

Published On: Thursday, May 5, 2022 | By:

Asian equities witness large outflows for last four months

Asian equities saw massive foreign capital outflows in April. This is mainly driven by the expectations of a hawkish policy by the U.S. Federal Reserve and concerns over the impact of China's lockdowns on regional growth. Overseas investors offloaded Asian equities worth $14.22 billion in their fourth straight month of net selling, Refinitiv data for stock exchanges in Taiwan, India, South Korea, the Philippines, Vietnam, Indonesia, and Thailand showed. The region's combined net foreign selling from January to April stood at $45.76 billion, the most in the first four months since at least 2008.

However, Indonesian, Thai and Vietnamese equities witnessed foreign inflows of $1.57 billion, $289 million and $175 million respectively in April.

"Southeast Asia markets are gaining traction as the region offers best growth potential," said a investment strategist.

"In fact, the region is expected to deliver superior earnings growth than its North Asian peers as it benefits from post-pandemic recovery, higher commodity prices and still accommodative central banks."he said.

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