Asian Equities See Major Outflows for 4th Straight Month

BANGKOK (NNT) – Asian equities saw massive foreign capital outflows in April on expectations of a hawkish policy by the U.S. Federal Reserve and concerns over the impact of China’s lockdowns on regional growth.

According to Refinitiv data for stock exchanges in Taiwan, India, South Korea, the Philippines, Vietnam, Indonesia and Thailand, overseas investors offloaded Asian equities worth US$14.22 billion in their fourth straight month of net selling.

The region’s combined net foreign selling during January to April stood at $45.76 billion, the most in the first four months since at least 2008.

Analysts said a rise in expectations for aggressive monetary policy tightening in the United States, and lockdowns in China, impacting regional businesses, kept investors on the sidelines in April.

Taiwanese, South Korean and Indian equities saw foreign outflows of $8.86 billion, $4.97 billion and $2.24 billion, respectively, while rising inflation also remained a key investor concern in South Korea and India.

South Korea’s consumer inflation hit a more than 13-year high in April. Meanwhile, the Reserve Bank of India raised its key lending rate by 40 basis points this week to tame surging retail prices.

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