Fund Outflows
Foreign funds have withdrawn a net $41 billion from shares in Asia excluding China this year, according to data compiled by Bloomberg.
“We are neutral Asia ex-Japan equities,” BlackRock Investment Institute strategists including Jean Boivin and Wei Li wrote in a note. “China’s deteriorating macro outlook is a worry, and policymakers have yet to fully deliver on promises of easing.”
Still, the resource-linked markets of Australia, Indonesia and Malaysia may be the bright spots as commodity prices remain elevated. Southeast Asian shares will also be boosted as regional economies reopen their borders to tourists.
Southeast Asia’s markets benefit from “reopening, post-pandemic recovery, higher commodity prices and still relatively accommodative central banks compared to other regions,” said Jessica Tea, an investment specialist at BNP Paribas Asset Management.
-With assistance from Abhishek Vishnoi and Garfield Reynolds.
This article was provided by Bloomberg News.