Asian equities attracted significant foreign investment in May, reversing a four-month streak of net selling. Investors returned cautiously as worries over immediate economic damage from higher U.S. tariffs eased.
According to LSEG data, foreign investors poured around $10.65 billion into stocks across key Asian markets including India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines. This marked the largest monthly net buying since February 2024.
Taiwan led the surge with foreign inflows totaling $7.28 billion — the highest since November 2023. India also saw a strong inflow of $2.34 billion, its biggest monthly foreign purchase since September 2024. South Korea, Indonesia, and the Philippines recorded net foreign inflows of $885 million, $338 million, and $290 million respectively. Meanwhile, Thai equities faced net selling of $491 million.
Meanwhile, cash markets experienced their largest inflow since January, with nearly $95 billion entering in the latest week, according to Bank of America (BoFA) citing EPFR data. Emerging markets enjoyed the strongest combined inflow into equities and debt in eight weeks.
Gold investment continues to shine this year, with record inflows totaling $75 billion year-to-date. In contrast, U.S. equities have seen outflows over the past three weeks, while European markets maintained steady inflows for eight consecutive weeks.
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