Last updated on August 23, 2025
KUALA LUMPUR: Foreign investors returned as net buyers in Asian markets last week, reversing the previous week’s outflows with total net inflows of US$996 million (RM4.22 billion), led by strong buying in Taiwan.
According to MBSB Investment Bank Bhd’s fund flow report for the week ended Aug 8, all markets in the region except India and the Philippines recorded net foreign inflows.
Taiwan topped the list with US$2.06 billion in net inflows — more than 2.5 times the previous week’s US$820.8 million — marking its seventh consecutive week of foreign buying. The upbeat sentiment was supported by second-quarter 2025 GDP growth and Fitch’s reaffirmation of Taiwan’s long-term sovereign rating at “AA” with a stable outlook, citing fiscal discipline and strong external balances. However, potential 100% US tariffs on semiconductor imports, which make up around 80% of Taiwan’s exports to the US, remain a key risk.
South Korea posted US$344.9 million in net inflows, extending its five-week buying streak on the back of moderating inflation and resilient exports. Thailand attracted US$199.5 million — 3.6 times higher than the prior week’s US$54.9 million — following an upward GDP growth revision after the US reduced tariffs on Thai goods.
On the outflow side, India saw the largest in the region with US$1.34 billion, its fourth consecutive week of declines, as investors assessed tariff concerns and monetary policy cues. The Reserve Bank of India kept its policy repo rate unchanged at 5.5% and maintained its FY2026 GDP growth forecast at 6.5%, while cautioning on risks from prolonged 50% US tariffs.
The Philippines posted a marginal US$100,000 outflow, its second straight week of net selling, despite reporting 5.5% year-on-year GDP growth in 2Q2025 — the fastest in a year — driven by a rebound in agriculture and steady household spending. A recent cut in US tariffs on Philippine goods from 20% to 19% has eased some pressure, though inflation risks persist.
Domestically, foreign investors continued net selling for the fifth week in a row, recording RM1.14 billion in outflows, with the largest single-day outflow of RM291 million on Tuesday. Only the industrial products and services sector (RM62.7 million) and transportation and logistics sector (RM36.2 million) saw net inflows. The biggest net outflows were in financial services (-RM344.3 million), healthcare (-RM239.1 million) and utilities (-RM210.2 million).
Local institutions extended their net buying streak to a second week with RM1.03 billion in purchases, nearly four times higher than the RM263.7 million recorded a week earlier. Local retailers also maintained their buying momentum for a fifth straight week, adding RM105.5 million in net inflows.
Average daily trading volumes fell across the board except for local institutions, which saw a 4.8% increase. Foreign investors and local retailers recorded declines of 6.6% and 6.1% respectively.
Source: The Edge
