Foreign investors withdrew money from India and Indonesia in April due to US monetary policy concerns.

From Asia Financial: 2024-05-31 05:46:44

Foreign investors pulled money from emerging markets like India and Indonesia in April, marking the first monthly outflow since October. The Institute of International Finance reported a net non-resident portfolio outflow of -$0.7 billion, citing concerns over US monetary policy tightening. The figure contrasted with March’s $30.2 billion net inflows and April 2023’s $16.3 billion inflow.

Outflows from ex-China stock portfolios drove the negative flow, with $3.8 billion exiting the regional asset class. Conversely, ex-China debt saw a $2.7 billion inflow. China’s stocks experienced a $0.6 billion outflow, but the debt category recorded April inflows of $0.9 billion, continuing a seven-month streak. Expectations of a US Fed rate cut have shifted to September, with only a 25 basis-point reduction priced in, according to the CME FedWatch tool.



Read more at Asia Financial: Foreign Investors Dumped Stocks in India, Indonesia in April: IIF