By Gaurav Dogra
BENGALURU- Asian stocks were under selling pressure from foreign investors for a second consecutive month in November amid worries over potential US tariff hikes on regional exports under the incoming Donald Trump administration next year.
Foreigners net withdrew $15.88 billion out of equity markets in Taiwan, South Korea, India, Thailand, Indonesia, Vietnam and the Philippines, following a net $15.38 billion worth of sales in the prior month, LSEG data showed. It was their largest monthly net selling since June 2022.
“What we have seen in November is a reaction to Trump 2.0, where there are concerns that US President-elect Donald Trump’s protectionist stance could mean a follow-through of his tariff threats, which may negatively impact Asian export-driven economies,” said Yeap Jun Rong, market strategist at IG.
Last month, Trump pledged to impose significant tariffs on the United States’ three largest trading partners, including China, a move that could impact regional exports heavily reliant on strong supply chains with China.
Chetan Seth, an analyst at Nomura, highlighted a bleak outlook for Asian stocks into 2025, attributing the pessimism to factors including impending tariffs, trade tensions, a potentially stronger USD, rising bond yields and less supportive monetary policies, compounded by China’s delay in implementing anticipated stimulus measures.
Taiwanese stocks witnessed net foreign outflows of $8.41 billion in November, the biggest since April 2022. South Korean stocks also lost a hefty $3.21 billion, marking a fourth successive month of capital outflows.
A surge in the dollar after Trump’s victory in the Nov. 5 election also dampened investor sentiment, as the dollar index reached 108.09, its highest level since Nov. 11, 2022. – Reuters
