US Tariff War Continues To Impact Asian Equities With Net Outflows Of US$6.73 Bln - MIDF

KUALA LUMPUR, March 17 (Bernama) -- Foreign investors maintained a bearish stance on Asian equities, continuing to net sell for the third consecutive week, with a significant outflow totaling US$6.73 billion (US$1=RM4.43), except for the Philippines, while local investors helped Bursa Malaysia to cushion the impact of the broader market outflows.

“The only country that recorded net foreign inflows was the Philippines, while other regional markets continued to experience outflows,” MIDF Amanah Investment Bank Bhd said in its Fund Flow Report titled “Tit for Tat: U.S. Tariffs Spark Global Retaliation” for the week ended March 14.

Taiwan recorded the highest net outflow for the third consecutive week, totalling US$3.80 billion as foreign investors aggressively offloaded shares, particularly its semiconductor foundry TSMC amid global concerns over chip stock valuations.

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South Korea saw a net outflow of US$1.51 billion, India (-US$603.9 million), Thailand (-US$248.6 million), Indonesia (-US$225.7 million), and Vietnam -US$66.9 million.

Meanwhile, the local bourse saw foreign investors’ outflow of about RM1.34 billion or about US$302.4 million.

MIDF said analysts believe that while political tensions could introduce uncertainties in the Phillippines, the country’s continue to attract foreign investments.

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The Philippines led the region with a net inflow of US$32.5 million, despite political turbulence including the arrest and deportation of former President Rodrigo Duterte and the impeachment of Vice-President Sara Duterte.

“However, to return to its pre-pandemic growth trajectory, the Philippines would need to achieve an ambitious 9.0 per cent to 9.5 per cent annual gross domestic product growth (GDP) until 2028, significantly higher than the government’s 6.0 per cent to 8.0 per cent target,” it said.

In South Korea, investor sentiment remains weak as the US Energy Department classified it as a "sensitive" country, fuelling concerns about geopolitical risks while India continued its foreign outflows amid economic and trade fluctuations.

Thailand also experienced foreign withdrawals for a third consecutive week as the government ramped up economic stimulus measures, including a US$4.4 billion cash handout programme targeting youth to boost domestic spending.

MIDF Amanah said Indonesia experienced a net outflow as the government maintained its 2025 budget deficit forecast at 2.53 per cent of GDP, despite a 30 per cent decline in tax revenues in early 2025.

Vietnam is reviewing its import duties on US goods, including liquefied natural gas and agricultural products to ease trade tensions and avoid potential retaliatory tariffs from Washington.

Back home, it said local institutions continued to support Bursa Malaysia for the 21st consecutive week with a robust RM1.31 billion inflow into domestic equities, more than doubling the RM617.3 million inflow from the previous week.

It said local retail investors extended their net buying streak for the fifth consecutive week, although at a much slower pace, recording a net inflow of RM31.5 million, a sharp decline from RM264.2 million in the week prior.

“The average daily trading volume (ADTV) saw broad-based increases, except for local retail investors,” it said.

It said foreign investors and local institutions recorded gains of 11 per cent and 10.9 per cent, respectively, while local retailers saw a marginal decline of 1.6 per cent.

-- BERNAMA