Kuala lumpur: Foreign investors have continued their five-week streak of withdrawing funds from eight Asian markets, resulting in net outflows amounting to US$12.13 billion. According to MBSB Investment Bank Bhd, Indonesia was the only nation to experience net inflows during this period, while Taiwan led the pack in net foreign selling.

Indonesia stood out as the sole market with a positive net buying position, recording US$20.3 million in net foreign inflows. This was largely attributed to the Indonesian central bank's decision to maintain the benchmark seven-day reverse repo rate at 4.75 percent, coupled with stable deposit and lending facilities rates. The central bank's decision aimed to stabilize the Indonesian rupiah, which had depreciated against the US dollar amidst ongoing capital outflows. Bank Indonesia also reaffirmed its commitment to managing inflation within its target range, despite February 2026 seeing a year-on-year rise to 4.76 percent.

Taiwan, on the other hand, extended its three-week net foreign selling streak, with outflows totaling US$5.64 billion, marking the largest loss in the region. The escalating conflict in West Asia has heightened fears of potential supply chain disruptions and an increase in global energy prices. Despite Taiwan's limited direct exposure to the Strait of Hormuz, its significant energy import dependency makes it vulnerable to fluctuations in oil prices and imported inflation pressures.

In Malaysia, foreign investors continued their net selling trend on Bursa Malaysia for the second consecutive week, culminating in RM168.3 million in net foreign outflows. Notably, net selling was observed on two out of the four trading days, with the largest outflows occurring on Thursday and Monday. Conversely, the plantation, industrial products and services, and healthcare sectors experienced net foreign inflows, while financial services, consumer products and services, and construction sectors faced outflows.

Local institutions in Malaysia recorded a net inflow of RM332.8 million, marking a second week of net buying, while local retailers saw a net outflow of RM164.6 million, reversing the previous week's inflows. Average daily trading volumes declined across the board for local retailers and institutions, while foreign investors saw an increase in trading activity.