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Foreign Investors Favor Taiwan Stocks Amid Mixed Emerging Asian Market Performance
Finance · Investment Managers · economic_daily · 2026-09-01
2025
While hawkish Fed signals triggered capital outflows across emerging Asia, Taiwan stocks attracted significant foreign inflows, and Vietnam led regional gains.
What Happened
Capital Flows: Emerging Asian markets saw mixed capital flows last week with a net outflow of $1.81 billion, as heavy selling in South Korea contrasted with strong foreign buying in Taiwan, which received $3.74 billion.
Market Performance: Regional equity performance varied, with Vietnam leading the pack with a 3.6% weekly gain, followed by Taiwan at 2.4%, while markets like the Philippines and South Korea faced downward pressure.
Fed Outlook: Fed Chair Powell’s hawkish stance on inflation has increased market expectations for a September rate hike, prompting a rise in bond yields and urging investors to adopt multi-asset strategies to mitigate volatility.
Vietnam Growth: Vietnam’s manufacturing sector remains robust with a five-month high in PMI, supported by government infrastructure initiatives and diversified financing tools that bolster long-term economic optimism.