Asian equities witnessed a second consecutive month of foreign investor outflows in November, driven by fears of potential US tariff hikes under President-elect Donald Trump.
Foreign investors pulled a net $15.88 billion from equity markets in Taiwan, South Korea, India, Thailand, Indonesia, Vietnam, and the Philippines, following $15.38 billion in net sales in October, marking the largest monthly outflows since June 2022, according to LSEG data.
Market strategist Yeap Jun Rong attributed the sell-off to apprehensions about Trump’s protectionist policies, which could disrupt regional exports reliant on China-centric supply chains. Trump’s recent pledge to impose significant tariffs on major US trading partners has added to the uncertainty.
Taiwan experienced the largest outflows, losing $8.41 billion, its worst since April 2022, while South Korea faced $3.21 billion in outflows for the fourth consecutive month. Indian equities saw $2.56 billion in net sales, while Indonesia, Vietnam, and Thailand reported outflows of $1.06 billion, $461 million, and $395 million, respectively.
Nomura analyst Chetan Seth predicted a challenging outlook for Asian stocks into 2025, citing trade tensions, stronger bond yields, a robust dollar, and delayed Chinese stimulus as key risks. Meanwhile, BNP Paribas Asset Management’s Minyue Liu noted potential support from rate cuts, earnings recovery, and emerging market resilience, which could attract foreign flows despite prevailing uncertainties.
Attribution: Reuters
Subediting: M. S. Salama