Kuala lumpur: Foreign investors turned net buyers in Asian markets last week, reversing the previous week’s outflow, recording an inflow of US$996 million (US$1=RM4.23), with Taiwan recording the highest purchases in the region.
According to BERNAMA News Agency, MBSB Investment Bank Bhd’s Fund Flow Report for the week ended August 8, 2025, reported that only India and the Philippines registered net foreign outflows, while all other countries saw net inflows.
The report highlighted that Taiwan posted the region’s largest net inflow at US$2.06 billion, more than 2.5 times the previous week’s US$820.8 million, marking a seventh consecutive week of foreign buying. This was attributed to the positive sentiment lifted by the second quarter of calendar year 2025 (2Q 2025) gross domestic product (GDP) growth. Fitch reaffirmed Taiwan’s long-term sovereign rating at ‘AA’ with a stable outlook, citing strong fiscal discipline and robust external balances. However, the outlook faces potential challenges from 100 per cent tariffs on semiconductor imports, crucial to Taiwan’s exports to the United States.
Meanwhile, Korea recorded a net inflow of US$344.9 million, extending foreign investors’ buying streak to five weeks. This was supported by moderating inflation and a resilient export performance. Thailand attracted US$199.5 million, 3.6 times higher than the prior week’s US$54.9 million, following a revision in GDP growth forecast after the US tariff cut on Thai goods.
Regarding outflows, MBSB noted that India recorded the region’s largest outflow at US$1.34 billion, extending its losing streak to four weeks, as investors weighed tariff risks and monetary policy signals. The Reserve Bank of India kept its policy repo rate unchanged at 5.5 per cent and maintained its financial year 2026 GDP growth forecast at 6.5 per cent. This decision was underpinned by a more benign inflation outlook but warned of potential growth risks from prolonged 50 per cent US tariffs.
The Philippines saw a marginal outflow of US$0.1 million, its second week of net selling, despite reporting 2Q 2025 GDP growth of 5.5 per cent year-on-year, the fastest pace in a year. This growth was driven by a sharp rebound in agriculture and steady household spending. The recent reduction in US tariffs on Philippine goods from 20 per cent to 19 per cent has eased some external headwinds. However, the central bank remains vigilant regarding inflation risks from geopolitical tensions and external policy uncertainty.
On the domestic front, the investment bank reported that foreign investors continued their net selling streak for the fifth consecutive week, with a net outflow of RM1.14 billion. The largest outflow was recorded on Tuesday, amounting to RM291 million. The only two sectors that experienced net foreign inflows were industrial products and services (RM62.7 million) and transportation and logistics (RM36.2 million). Conversely, the top three sectors with the highest net foreign outflows were financial services (-RM344.3 million), healthcare (-RM239.1 million), and utilities (-RM210.2 million).
The report also mentioned that local institutions extended their net buying streak to two consecutive weeks, registering purchases of RM1.03 billion, 3.9 times higher than the previous week’s inflow. Local retailers continued their net buying activities, leading to a fifth consecutive week of purchases with a net inflow of RM105.5 million. MBSB noted that the average daily trading volume experienced a broad-based decline last week, with foreign investors and local retailers recording declines of 6.6 per cent and 6.1 per cent respectively, while local institutions saw an increase of 4.8 per cent.