How has been the FPI selling in emerging markets across Asia?
Answer
Answer
Asia funds have sold $40 billion in emerging Asia (ex-China) in the last quarter. The steepest selling was visible in Taiwan, South Korea and India; the 3 most liquid EMs for global investors in the Asian region. Even Indonesia saw heavy selling.
It is largely the macros that have triggered risk-off sentiments among investors. Amidst rampant inflation and rising central bank hawkishness, FPIs are even preferring to err on the side of caution. Asian currencies are under strain and that is worsening matters.