Foreign investors pull out of Asian stocks in October as Vietnam attracts inflows
LSEG data show that foreign investors withdrew a net $49.77 billion from seven Asian stock markets in October 2026, the largest monthly outflow in four months. Vietnam and the Philippines recorded net inflows of $122 million and $109 million, respectively.
Financial data company LSEG reported that in October 2026, foreign investors withdrew a net $49.77 billion from the stock markets of South Korea, Taiwan, India, Indonesia, Thailand, Vietnam and the Philippines combined, the largest monthly net outflow since June. Vietnam’s stock market, however, recorded a net foreign inflow of $122 million that month, while the Philippines recorded $109 million.
Outflows were concentrated in Taiwan and South Korea. In October, foreign investors sold a net $30.68 billion in Taiwanese stocks and $14.59 billion in South Korean stocks. Since the start of November, foreign investors have withdrawn another net $22.6 billion from Asian stock markets, according to LSEG data.
Investors have grown concerned about the returns on the large amounts of cash major technology companies are spending on artificial intelligence, as well as the possibility of tighter regulation after the US midterm elections. Wael Makarem, senior financial strategist at Exness, said the withdrawals reflect investors reducing their AI-related holdings; data center construction could face stricter regulation and environmental impact assessments.
India’s stock market recorded a second consecutive month of net foreign outflows in October, totaling $3.6 billion, but has seen net inflows of $5.68 billion since the start of November. The Indonesian and Thai stock markets recorded net outflows of $938 million and $199 million, respectively, in October.
Indian securities traders.（VietVance）
Some analysts believe foreign investors may be shifting capital from Asia to developed markets. In October, the MSCI Asia Pacific ex Japan Index fell 6.91%, while the MSCI global index fell 1.69%. Scarlett Liu, Asia Pacific equity derivatives strategist at BNP Paribas, said the relative resilience of US stocks and rising US Treasury yields may have influenced international investors’ allocations.
Source: VietVance
