Foreigners head for the exits

The financial turmoil of the past month in Asia has seen foreign investors scramble for the exit. Net foreign outflows from the region’s equity markets have reached nearly US$10bn so far in August, which is the highest in any month since the “Taper Tantrum” of 2013. All of the economies that publish data have recorded net outflows, but out flows from India and Korea have been especially large. Although the region’s equity markets have bounced back a little over the past couple of days, concerns about China anduncertainty over the outlook for US monetary policy are likely to keep foreign investors wary over the weeks ahead.