Global Market: Foreign investors pull $23.5 billion from Asian equities in September as US yields surge
Economic Times 1 hr ago·9 Oct 2026, 9:56 am
In September foreign investors pulled about $23.5 billion out of Asian equities, the largest monthly outflow this year. The sell‑off was sparked by a jump in U.S. Treasury yields, which made dollar assets more appealing, and by worries over inflation and tighter monetary policy. South Korea and India recorded the biggest net withdrawals, and hedge funds also trimmed exposure.
The outflow can increase volatility in Indian markets, as foreign money often underpins price gains and liquidity. A sudden drop in demand may pressure stock prices, affect the rupee, and raise financing costs for companies that rely on foreign capital.
Investors will be watching U.S. yield trends, upcoming Fed communications, and domestic economic data for clues on whether risk appetite will recover. A shift back into Asian equities could support indices, while continued pressure on yields may keep foreign investors cautious.
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- Category: Economy.
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