Foreign Investors Show Mild Net Selling in Asian Markets at End of 2025
Recent figures showed that Asian equity markets recorded mild net foreign selling in December, reflecting investor caution toward the end of a year marked by global economic volatility.
The moves coincided with continued capital inflows into US and European markets, which benefited from improved growth expectations and easing inflationary pressures.
Analysts said foreign investors reassessed their exposure to Asia amid slower regional growth and currency fluctuations, prompting temporary position reductions.
Nevertheless, many Asian exchanges remain attractive due to solid fundamentals and domestic stimulus programs.
Experts expect positive flows to return in the first quarter of 2026 as the global monetary policy outlook becomes clearer and supply chains stabilize.
The moves coincided with continued capital inflows into US and European markets, which benefited from improved growth expectations and easing inflationary pressures.
Analysts said foreign investors reassessed their exposure to Asia amid slower regional growth and currency fluctuations, prompting temporary position reductions.
Nevertheless, many Asian exchanges remain attractive due to solid fundamentals and domestic stimulus programs.
Experts expect positive flows to return in the first quarter of 2026 as the global monetary policy outlook becomes clearer and supply chains stabilize.
