Foreign investors drained $40 billion from emerging Asia last quarterRampant inflation, as well as aggressive central bank interest-rate hikes, saps the outlook for global growth. Global funds offloaded a net $40 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. Indian shares saw $15 billion of sales, and South Korea reported $9.6 billion, also exceeding the earlier periods. Swaps are pricing in a further 150 basis points of rate hikes from the US central bank this year.

Source: Bangkok Post July 04, 2022 20:35 UTC