From Yahoo Finance: 2025-05-13 04:45:00

Asian equities are seeing a surge in foreign investments in May, reversing the trend of outflows in the first four months of the year. Countries like Taiwan and India are leading the rebound, attracting billions in foreign inflows.

Despite a rocky start to the year, Asian equities have rebounded strongly, with the MSCI Asia-Pacific Index jumping 18% since April 7. This recovery is driven by optimism over a 90-day halt on higher U.S. tariffs and progress in trade talks between the U.S. and China.

The U.S. and China have agreed to reduce reciprocal tariffs temporarily, easing fears of a global economic slowdown. While some analysts remain cautious about the uncertainty surrounding trade negotiations, the recent developments have led to a more positive outlook for Asian equities.

Goldman Sachs notes that while there are positive signs in the market, subdued company earnings growth and complacent valuations could lead to potential market pullbacks in the near future. Despite the optimism, it is important to remain cautious in light of ongoing trade negotiations.

Read more: Foreign investors return to Asian equities in May, reversing prolonged outflows