Insignia Consultants | Foreign investors return to Asian equities in May, reversing prolonged outflows
Foreign investors return to Asian equities in May, reversing prolonged outflows
May 13 (Reuters) - Asian equities are attracting foreign investments so far in May, marking a sharp reversal from outflows in the first four months of the year, as optimism over progress in trade talks has eased fears of U.S. tariffs fuelling a global economic slowdown.
Foreign investors have purchased approximately $6.22 billion worth of equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines so far this month through May 12, according to LSEG data.
Leading the rebound, Taiwan has attracted a net $4.43 billion in foreign inflows, ending a four-month streak of outflows, while Indian equities have also seen a substantial $1.68 billion in foreign investment.
Regional stock markets suffered around $54.33 billion in foreign outflows during the first four months of the year, the largest exodus for the period since at least 2010.
After a turbulent start to the year due to concern about U.S. President Donald Trump's trade policies, Asian equities have staged a strong recovery. The MSCI Asia-Pacific Index has surged 18% since April 7, driven by a 90-day halt on higher U.S. tariffs and progress in trade negotiations.
