SINGAPORE (BLOOMBERG) – 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 under way.
Global funds offloaded a net US$40 billion (S$55.8 billion) of equities across seven regional markets last quarter, exceeding any three-month period characterised 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.
Money managers are pulling out of higher-risk markets as rampant inflation and aggressive central bank interest rate hikes sap the outlook for global growth. Fears of a recession in the United States and supply chain disruptions in Europe and China, in a global economy still recovering from Covid-19 lockdowns, are providing additional…
