Asian Stocks Suffer Biggest Outflows Since 2008

Foreign investors withdrew more money from emerging Asian equities in 2022 than in any year since the global financial crisis in 2008, as rising US interest rates pulled funds towards dollar assets, Gaurav Dogra reported for Reuters.

Photo Insert: Data from stock exchanges in Taiwan, India, the Philippines, Vietnam, Thailand, Indonesia, and South Korea showed foreigners sold equities worth $57 billion last year, the biggest outflow since 2008.

Data from stock exchanges in Taiwan, India, the Philippines, Vietnam, Thailand, Indonesia, and South Korea showed foreigners sold equities worth $57 billion last year, the biggest outflow since 2008.

After four straight 75-basis point hikes earlier in 2022, the US Federal Reserve raised its overnight borrowing rate by another 50 basis points in December. Due to the hikes, the yield on safer 10-year US Treasuries climbed about 230 basis points to 3.83% last year, which hit the foreign demand for riskier regional equities.

Taiwanese equities faced outflows worth $41.6 billion last year, leading the regional sales, while India and South Korea witnessed an outgo of $15.4 billion and $9.6 billion, respectively.

Hit by falling foreign demand and a worsening economic outlook, the MSCI's Asia Pacific index plunged 19.4% last year - the biggest fall since dropping 43.3% in 2008.

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