You have not yet added any article to your bookmarks!
Join 10k+ people to get notified about new posts, news and tips.
Do not worry we don't spam!
Post by : Shakul
Foreign investors sharply increased selling in Asian equity markets during May as concerns over rising global inflation, higher borrowing costs, and geopolitical tensions continued to pressure investor sentiment across the region.
According to Reuters data, foreign investors have sold nearly $24.75 billion worth of Asian equities so far this month. The last week alone recorded a massive $17.27 billion in outflows, making it one of the biggest weekly foreign sell-offs seen in regional markets in recent years.
The selling pressure intensified after the 30-year US Treasury yield climbed to its highest level since 2007. Rising bond yields generally make equities less attractive because investors can earn safer returns from government bonds, especially during uncertain economic conditions.
Analysts believe the ongoing conflict-driven inflation concerns and tighter financial conditions are forcing investors to reduce exposure in growth-focused Asian markets. Technology-heavy exchanges in South Korea and Taiwan were among the worst affected during the recent market correction.
South Korean stocks witnessed record foreign outflows of around $13.14 billion in just one week. Taiwan also experienced heavy selling worth approximately $2.88 billion, while Indian equities recorded foreign withdrawals of nearly $1.35 billion during the same period.
Market experts stated that Asian equity markets remain highly sensitive to movements in US bond yields. Investors are increasingly cautious that prolonged high interest rates could hurt company earnings, reduce corporate margins, and slow overall economic growth in export-driven economies across Asia.
Despite the broader market weakness, some countries continued to attract foreign investments. Indonesian stocks received inflows of nearly $511 million, while Thailand recorded around $215 million in foreign buying, showing selective investor confidence in certain Southeast Asian markets.
Financial analysts warned that volatility may continue in the coming weeks as investors closely monitor inflation trends, central bank decisions, and developments in global geopolitical tensions that could further impact global capital flows and market stability.
#Economy #Stock market Beginner #Business & economy #South Korea #Asia #Markets #Taiwan
Indonesia Raises Rates To Save Rupiah
Indonesia’s central bank hikes interest rates sharply as the rupiah hits record lows amid global inf
Samsung Strike Threatens South Korea Economy
South Korea may invoke rare emergency arbitration as Samsung workers plan an 18-day strike over fail
Asian Markets See Heavy Foreign Sell-Off
Rising US bond yields and inflation fears trigger massive foreign outflows from Asian equities, led
India Cricket Squad Set For Afghanistan Series
Rohit Sharma and Virat Kohli return for ODIs against Afghanistan while Jasprit Bumrah has been reste
Indian Diplomat Found Dead In Bangladesh
Indian protocol officer Naren Dhar was found dead inside the Indian mission premises in Chittagong a
India Scorches Under Extreme Heatwave
Extreme heat grips India as temperatures cross 47°C, with El Niño, urban heat and weak rainfall wors