Outflows outpace inflows in Asia markets, reaching US$13.61b in total

KUALA LUMPUR, June 15 — Foreign investors extended a two-week net selling streak across the eight markets in Asia, with net foreign outflows totalling US$13.61 billion (RM55.1 billion), according to MBSB Investment Bank Bhd (MBSB IB).

The only Asian market to see net foreign inflows was the Philippines, with outflows led by Taiwan, South Korea, India, Indonesia, Malaysia, Vietnam, and Thailand, the investment bank said in its weekly fund flow report for the week ended June 12, 2026.

MBSB IB said the Philippines ended a three-week consecutive week of net selling, with net foreign inflows totalling US$1.9 million, supported by improving labour market conditions, as the unemployment rate declined to 4.7 per cent in April 2026 from 5.0 per cent in March 2026, marking its lowest level in four months.

It said that in Taiwan, foreigners recorded two weeks of net selling, recording outflows of US$8.50 billion, the largest in the region, despite continued strength in external demand, with its exports surging 51.7 per cent year-on-year to US$78.5 billion in May 2026 (Apr 2026: 39.0 per cent), significantly exceeding market expectations of 37.9 per cent.

In South Korea, foreign investors extended to a nine-week net selling streak, recording outflows of US$2.37 billion, despite a stronger-than-expected economic rebound, with its gross domestic product expanding 1.8 per cent quarter-on-quarter in the first quarter (1Q) of 2026  (4Q 2025: -0.1 per cent), surpassing the preliminary estimate of  1.7 per cent, it said.

Meanwhile, on Bursa Malaysia, foreign institutions extended their net selling to a fifth consecutive week, recording RM658.3 million net outflows, with selling activity persisting across all five trading days last week, it said.

The investment bank said the largest outflow was recorded on Tuesday (RM230.2 million), followed by Monday (RM177.4 million), Wednesday (RM133.9 million), Friday (RM78.4 million), and Thursday (RM38.3 million).

“The top three sectors that recorded net inflows by foreign institutions were technology (RM132.3 million), plantation (RM41.4 million), and transportation and logistics (RM36.7 million).

“Meanwhile, the top three sectors that recorded net outflows by foreign institutions were financial services (RM479.1 million), consumer products and services (RM112.8 million) and healthcare (RM62.4 million),” it said.

MBSB IB said that local institutions extended their net buying streak to nine weeks, recording net inflows of RM459.1 million, while retailers also remained net buyers for a fifth straight week, with inflows of RM199.1 million.

It added that average daily trading volume declined broadly across all investor segments, falling 23.0 per cent for retailers, 20.5 per cent for local institutions, and 37.4 per cent for foreign institutions. — Bernama