(Reuters) – Foreign outflows from Asian equities were the biggest in at least 7 years in 2018 as the Sino-U.S. trade war and slowing profits battered regional stocks last year.
Data from South Korea, Taiwan, India, Thailand, Philippines, Indonesia and Vietnamese stock exchanges showed foreigners sold a net $33.6 billion worth of equities last year, which was the biggest since at least 2012.
Doubt - Year - Worries - US-China - Trade
“2018 had been of little doubt a turbulent year, underscored by worries over US-China trade relations and growth among others,” said Jingyi Pan, a Singapore-based market strategist at trading and investments provider IG.
Taiwan led regional equities outflows with net sales of $11.7 billion last year, followed by Thailand and South Korea which saw outflows of $8.9 billion and $5.6 billion, respectively.
Flows - Time - Years
Net foreign flows turned negative for the first time in three years in 2018.
In a ****-for-tat trade war, the United States and China imposed tariffs on each other’s imports last year, which triggered concerns about the region’s growth outlook and pulled down Asia’s major stock indexes.
MSCI - Index - Asia-Pacific - Shares - Japan
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 16 percent in 2018, its sharpest drop since 2011. Chinese shares were the biggest losers in the region, shedding about 29 percent in dollar terms.
Regional economic growth is expected to cool further...
Wake Up To Breaking News!