2024-03-08 06:45:48 ET
Foreign investment in Asian equities soared in February, fueled by a rebound in
Chinese
stocks after Beijing introduced reform measures and a surge in technology shares amid the artificial intelligence boom.
Stock exchanges in South Korea, Taiwan, Indonesia,
India
, the
Philippines
, Thailand, and Vietnam recorded a net purchase of $10.82 billion in regional equities by foreigners last month, reversing January’s sales of nearly $779 million.
MSCI Asia-Pacific index sees 4% increase
The MSCI Asia-Pacific index witnessed a 4% rise last month, recovering from January’s decline.
This shift in focus to positive Asian corporate earnings, moving away from concerns about the
U.S. Federal Reserve
‘s delayed rate cuts, contributed to the index’s rebound.
South Korea and Taiwan lead in tech investments
The majority of the investments were channeled towards South Korea and Taiwan, the region’s technology powerhouses, which attracted $6.1 billion and $3.7 billion, respectively.
These inflows underscore the countries’ status as leading tech hubs in Asia.
Diverse inflows across Asian markets
Indonesian, Indian, Philippine, and Thai equities also saw positive inflows, totaling $647 million, $186 million, $129 million, and $93 million, respectively.
However, Vietnam’s equities experienced a slight $59 million outflow, a shift from the previous month’s $48 million in net purchases, highlighting the varied investor interest across the region.
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China reforms, AI boom bring big foreign funds to Asian stocks
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