Asian Equities: Net Outflows Amid Policy Shifts an…
From Barchart: 2025-01-07 06:03:41
In 2024, overseas investors became net sellers of Asian equities due to concerns over U.S. policy shifts and macroeconomic challenges. They sold a net $15.8 billion in major markets, with Taiwan experiencing the highest outflows. Rising U.S. yields and underperformance of the MSCI Asia Pacific Index further impacted investor sentiment.
The policy uncertainty surrounding Donald Trump’s proposed tariffs and rising U.S. yields diverted capital away from Asia, affecting export-oriented economies like Taiwan, Thailand, and Vietnam. Geopolitical risks in the region added to market volatility, particularly for economies reliant on foreign investment.
Looking ahead to 2025, challenges persist for Asian equities, with ongoing policy uncertainty and geopolitical risks. However, countries with strong domestic consumption like India and Indonesia may offer stability amid global trade disruptions. Structural growth stories in Asia, such as demographic advantages and rising middle-class consumption, could support recovery in the latter half of 2025.
To navigate the current market conditions, investors can utilize APIs like the Industry P/E Ratio API to identify undervalued opportunities, the Sector Historical Overview API to analyze long-term performance trends, and the Financial Growth API to assess the growth trajectory of companies in key Asian markets. Despite short-term pressures, Asia’s long-term growth potential remains promising for savvy investors.
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