Global Investors Flock to North and Southeast Asia Stocks Amid Geopolitical Uncertainty
Global investors poured $3.3 billion into North and Southeast Asia stocks in January, marking the largest monthly inflow since September. Emerging market ETFs attracted $7.15 billion in the week ending January 16, with 75% directed toward Asia-focused funds. Debt markets in India, South Korea, Indonesia, and Thailand saw $3.7 billion in inflows during the same period.
Aberdeen Investments highlighted emerging Asia's outperformance potential, citing AI spending, credit conditions, and China's regional influence. The firm increased exposure to Taiwanese and South Korean equities, anticipating direct benefits from AI sector growth. Geopolitical tensions persist, but Asia's relative stability continues to attract capital.