ASIA STOCKS: Offshore Dip Buyers For South Korea, Mostly Outflows Elsewhere

For South Korea, Taiwan, and India, net equity outflows are comfortably negative for the past 5-trading days. Interestingly though, offshore investors were net buyers yesterday in South Korea, with markets plunging sharply. We have seen modest further inflows today, per the NBUY function on BBG, with just under $320mn in further inflows. This comes as onshore markets rebound sharply today (+9% for the Kospi), although we are still well off end Feb highs. Recall that offshore outflows were very strong from South Korea through to end Feb, over $8bn, post the LNY break. Hence there was scope yesterday to come back into South Korea's market (to take advantage of the dip). 

• Taiwan's net inflows for 2026 to date have been pared back considerably, with just over $6.6bn in net outflows for the past 5 trading days. The Taiex is rebounding today, although has considerably lower volatility compared to South Korean markets.
• The recovery in Indian inflow momentum also looks in jeopardy from the oil price shock, which has pushed local equities to fresh multi month lows.
• In South East Asian markets, flow trends have been more muted in the past few sessions. There have been signs of outflows, but only Malaysia has a negative sum for the past 5 trading days. 

Table 1: Asian Markets Net Equity Flows 

Source: Bloomberg Finance L.P./MNI