.jpg)
2 hours ago
2
Article content
(Bloomberg) — Global investors are on track to withdraw a record amount from Asian emerging-market equities excluding China, as surging oil prices due to the Middle East conflict clouds the region’s outlook.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Foreigners have sold about $52 billion of Asian stocks since the war in Iran began, putting the region on track for its biggest monthly outflow in Bloomberg-compiled data going back to 2009. Oil import-reliant markets such as Taiwan, South Korea and India led the selling.
Article content
Article content
Article content
Elevated oil prices are weighing on the economies of net energy importers, which are predominantly located in Asia. This month’s equity outflows have surpassed the pandemic-driven exodus of March 2020, and are more than double the losses seen in June 2022 in the wake of the Ukraine war.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“We are likely seeing some short term rotation into markets less exposed to Middle East energy risk, and this could continue until there is greater clarity on the Iran situation,” said Gary Tan, a fund manager at Allspring Global Investments. “Asia accounts for about 80% of crude demand flowing through the Strait of Hormuz, so any disruption there has a disproportionate impact on the region’s inflation and growth outlook versus other regions.”
Article content
Asian shares have come under pressure this month, underperforming their US peers which have remained relatively resilient thanks to the country’s status as a net energy exporter. A relatively stronger dollar and profit-taking in chip stocks have added to the strain.
Article content
Morgan Stanley strategists last week recommended investors sell into Asia’s stock rally, citing the region’s vulnerability to ongoing interruption in oil.
Article content
Investors remain cautious about US-Iran ceasefire prospects. While the US insisted talks were ongoing, Iran has rejected the outreach by President Donald Trump.
Article content
Advertisement 1
English (US)