Foreign investors attracted many Asian shares in January, hindered by higher US treasury results and increasing concerns that regional exports could suffer below the additional tariffs from President Donald Trump’s government.
Foreign shares divestment worth $ 12.5 billion, cleanly, in India, Taiwan, South Korea, Thailand, Indonesia, Vietnam and the Philippines in January, their third monthly net sales in four months.
Prena Garg, an Equity Strategy Expert at HSBC Global Research, links outflow with an increase in the results of US bonds and stronger dollars, noting that towering geopolitical concerns also make investors more avoid risk.
He said this trend was very visible in India, where domestic growth was softer, coupled with global macro factors, had prevented foreign investors.
Foreigners sold Indian shares worth $ 9.04 billion in January, their second largest monthly net sales were recorded.
The highest at 26 months from 110.17 months ago, driven by a strong labor market and triggered concerns about the federal reserve reluctance to cut interest rates this year. The 10 -year US Treasury results also touched the highest 14 months of 4.809% in January.
The US implemented an additional 10% tariff on all Chinese imports this week, with Beijing replied by announcing US import levies including oil, coal, gas, cars, and agricultural equipment, which will be kicked on February 10.
Meanwhile, foreigners sell Taiwan and South Korean shares worth $ 1.52 billion and $ 1 billion each last month.
“Aliran keluar di ekuitas Taiwan dan Korea terutama disebabkan oleh popularitas Deepseek karena investor menilai kembali lintasan pertumbuhan AI Capex mengingat model AI yang berbiaya rendah,” kata Jason Lui, kepala ekuitas APAC dan dan kepala ekuitas dan dan ekuitas APAC dan dan ekuitas dan APAC dan Head and APAC and APAC and APAC and derivative strategies at BNP Paribas (OTC :).
Foreigners also deployed $ 335 million in Thailand, $ 266 million in Vietnam’s shares, Indonesia’s shares worth $ 229 million and $ 114 million in the Philippine equity last month.
Yeap Jun Rong, a market strategy expert at the IG trading platform, said market volatility and global trade uncertainty continued to survive in February, while the risk of further-term-for-state retaliation between the US and China remained high.
“This can continue to guarantee a careful view of Asian equity, which can still limit foreign flow to the region for now.”
Source: Reuters
