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Foreign Investors Pull $5.3 Billion from Taiwan Stocks, Shifting Capital to India and Malaysia
Finance · Investment Managers · economic_daily · 2026-11-04
Foreign investors offloaded $5.32 billion in Taiwan stocks last week, marking the largest outflow in Asia as capital rotates into Indian and Malaysian markets.
What Happened
Foreign Capital Outflow: Recent data from Franklin Templeton reveals a significant shift in foreign investor sentiment across Asian markets, with Taiwan stocks facing a massive $5.32 billion net sell-off last week. This trend of divestment also extended to South Korea, Indonesia, Vietnam, and the Philippines, which saw varying degrees of capital outflows.
Regional Capital Rotation: In contrast to the heavy selling in Taiwan, India and Malaysia emerged as beneficiaries, attracting $1.15 billion and $79 million in net foreign inflows, respectively. This movement highlights a strategic reallocation by international investors seeking to diversify their regional exposure away from markets facing immediate pressure.
Emerging Market Drivers: Portfolio manager He Yingxin notes that emerging markets are currently positioned at the center of three major shifts: successful domestic reforms, the regionalization of global trade, and a broader diversification of international capital. These factors are creating a more favorable environment for long-term investment in these regions.
Strategic Outlook: As global portfolios remain heavily concentrated in dollar-denominated assets, rising geopolitical risks are prompting investors to seek greater regional diversification. Emerging markets are expected to capture more attention as investors look to mitigate risks and capitalize on these structural economic changes.