Asian stocks see biggest monthly foreign outflows in 1 year
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Asian equities witnessed massive foreign outflows in August, as risk sentiment was dented by worries over the longevity of the U.S. Federal Reserve's policy tightening cycle and a slowdown in the economic momentum of China.
Data from stock exchanges in India, Indonesia, the Philippines, South Korea, Taiwan, Thailand and Vietnam showed that foreigners had offloaded a net $4.74 billion of equities in August, the biggest amount since September 2022.
Last month, U.S. Treasury yields climbed to their highest in 16 years on expectations of an extended period of high-interest rates after crucial economic reports on jobs and consumption pointed to a surprisingly resilient economy.
"Sudden jump in U.S. yields tend to be negative for Asian markets, especially for high duration markets, i.e. markets where a large part of their earnings is expected to come in future," said Prerna Garg, an equity strategist at HSBC.
