Foreign Investors Dump $24.75 Billion in Asian Equities as 30-Year Treasury Yield Hits 2007 High
Updated
Updated · Reuters · May 20
Foreign Investors Dump $24.75 Billion in Asian Equities as 30-Year Treasury Yield Hits 2007 High
6 articles · Updated · Reuters · May 20
$24.75 billion of Asian equities has been sold by foreign investors so far in May, with a record $17.27 billion dumped in the last week alone across seven regional markets.
The selloff intensified as the 30-year U.S. Treasury yield climbed to its highest since 2007, raising borrowing-cost concerns and deepening worries that war-driven inflation will squeeze corporate margins.
South Korea absorbed the heaviest hit, with record foreign outflows of $13.14 billion last week; Taiwan lost $2.88 billion, India $1.35 billion and Indonesia $184 million.
HSBC said Korea and Taiwan are especially vulnerable because Asian funds hold concentrated positions there, increasing the risk that de-risking triggers sharper volatility.
Not all markets were hit equally: Indonesia still drew $511 million of inflows this month and Thailand $215 million, showing selective buying even as regional risk appetite deteriorated.
With strong tech earnings in Korea and Taiwan, will macro fears continue to dominate investment decisions in Asia?
Can South Korea's new shareholder reforms reverse the investor exodus and finally end the 'Korea discount'?
Did the May Trump-Xi summit over Taiwan trigger the record capital flight from Asian markets?