Global funds are offloading emerging Asia equities outside of China in droves as broader risk appetite cools amid concerns over a stronger dollar, higher borrowing costs and geopolitical tensions.
Foreign investors have dumped nearly $11 billion of shares in October, taking the three-month sell-off to about $27 billion, according to latest data compiled by Bloomberg. That’s the longest bout of selling since last June when the Federal Reserve’s tightening cycle and lockdowns in major Chinese cities were spooking investors.
Continued uncertainty about the path of US interest rates and potential impact of the Israel-Hamas war on oil prices — which almost reached $100 a barrel last quarter — have weighed on a region where most countries are oil importers. A stronger dollar is also straining local currencies as Treasury yields flickered near 5%, making equities less attractive.
“We are still keeping a cautious view, because we think that earnings estimates for 2024 are too high” in Asia, said Luca Castoldi, a hedge fund manager at Reyl Group. US growth will not be strong in 2024 and the effect of higher rates is being felt across sectors, he added.
Foreigners have pulled more than $4 billion of shares from Taiwan this month, while redeeming more than $2 billion from Korean and Indian markets. Meanwhile, overseas investors are 58 billion yuan ($8 billion) away from making 2023 the first year they would be net sellers of Chinese shares since the second mainland-Hong Kong trading link opened in 2016, as economic growth concerns persist.
China’s factory activity fell back into contraction in October, data released Tuesday showed. Investors are also looking ahead to the Federal Reserve’s policy decision and the US Treasury Department’s new borrowing plan later this week.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
