ASIA STOCKS: South Korea Sees Large Outflow On Record, Further Outflows Today
Yesterday's EM Asia flow update was dominated by tech related outflows, as sentiment continues to deteriorate in this space. The $3.6bn in net outflows from South Korea looks to be a daily record per the BBG data sourced from local exchanges. It also brings the 5-day sum of net outflows to near $7bn, a very heady sum for the past 5 trading days. We have seen some dip buyers emerge for the likes of Samsung and SK Hynix so far but sentiment remains fragile. Concerns around the large AI capex cycle (how this translates into revenue etc), along with broader deleveraging, leaves tech sensitive plays in Asia still vulnerable (today, per NBUY on BBG has seen another near $1.5bn in offshore outflows from South Korea). The 12 month rolling sum of South Korea flows is negative, close to -$8bn, but the trough last year was around -$25bn. Taiwan is seeing similar risks, although hasn't seen the same degree of outflow pressures in 2026 to date.
- Elsewhere, flow trends were mixed yesterday. Indian inflow momentum remains positive, but is coming from a low base and global equity jitters may slow further inflows even after this week's earlier good trade news.
- Indonesian outflows continue, with added fresh downside today after Moody's downgraded the Indonesia credit outlook late yesterday. At this stage, the JCI is off close to 2% and the index under 8000.
- Thailand inflows remain positive, with eyes on this week's election. The SET is eyeing an upside test through 1350.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2026 To Date | |
| South Korea (USDmn) | -3612 | -6757 | -4837 |
| Taiwan (USDmn) | -2268 | -4488 | -1060 |
| India (USDmn)* | 121 | 1034 | -2426 |
| Indonesia (USDmn) | -28 | -215 | -685 |
| Thailand (USDmn) | 131 | 211 | 379 |
| Malaysia (USDmn) | -16 | -62 | 229 |
| Philippines (USDmn) | 0 | 14 | 239 |
| Total (USDmn) | -5673 | -10264 | -8160 |
| * Data Up To Feb 4 |
Source: Bloomberg Finance L.P./MNI
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA PRESS: Dec Logistics Prosperity Index Hits Highest In 2025
China's logistics industry prosperity index rose by 1.5 percentage points to 52.4% in December, hitting the highest level of the year, CCTV News reported citing data by China Federation of Logistics and Purchasing. The logistics volume sub-index increased for the second month to 52.4%, along with the equipment-utilisation rate, new orders, the capital turnover rate and employment sub-indexes, which all rose into the expansion range.
CHINA PRESS: Local Goverments Highlight Innovation, Infrastructures
Several provinces have set their 2026 priorities on technological innovation, major project construction and optimising the business environment, the 21st Century Business Herald reported, citing statements from local meetings. Beijing has released an action plan to build an AI innovation hub, aiming to expand the industry to more than CNY1 trillion in scale over the next two years. Henan said it will implement a range of infrastructure projects, including comprehensive transportation systems, new energy systems, modern water networks and urban renewal. Hainan said it would expand the import and supply of high-quality goods and services, with a focus on duty-free shopping for offshore consumers, healthcare and international education.
CHINA PRESS: A-share Rally Seen To Extend - Analysts
Beijing's policy drive to boost technology innovation amid economic restructuring and improved performance of listed companies are expected to prolong the latest A-share rally, Yicai.com reported citing analysts. Meanwhile, ample liquidity, record low domestic interest rates, and long-term funds entering the market, will also help to extend the bull market, the newspaper said. The market may be shifting from a valuation repair phase to a profit-driven phase after the Shanghai Composite Index setting a new 10-year record on Tuesday, analysts said, noting opportunities in AI, domestic semiconductor production, new energy technologies, and innovative drugs as well as geopolitical risks that needed close monitoring.
