Asia Draws $100-B in Capital Away From U.S. as Investors Diversify

Asia excluding China has attracted roughly $100 billion in capital inflows over the past nine months as global investors diversify beyond U.S. assets, Kevin Sneader, Goldman Sachs’ president for Asia-Pacific ex-Japan, said, Yantoultra Ngui and Jun Yuan Yong reported for Reuters.

Foreign funds, though still below historical levels, are “taking a hard look at Asia.”

“This is a diversification movement, not an exit movement,” Sneader said at the Milken Institute Asia Summit in Singapore. Japan has been a key beneficiary, while China’s recent rally has been driven mainly by domestic investors.

Foreign funds, though still below historical levels, are “taking a hard look at Asia,” he said, with technology, consumer discretionary, and industrials leading inflows, and healthcare gaining traction in private markets.

Temasek International CEO Dilhan Pillay, speaking at the same event, said “globalization as we have known it is gone,” as geopolitics, tariffs, and energy constraints reshape investment returns.