Asia FI & FX Strategy Watch: Asia ex China Flows – Portfolio outflow pressure sustains

Research evidence excerpt

Asia FI & FX Strategy Watch: Asia ex China Flows – Portfolio outflow pressure sustains

Accessible version

Asia FI & FX Strategy Watch

Asia ex China Flows – Portfolio outflow

pressure sustains

09 June 2026 Exhibit 1:Aggregate cumulative flows into EM Asia debt and equity markets turned negative by

March-26 end, amounting to USD72.63bn of outflows GEM FI & FX Strategy

Cumulative equity outflows significantly surpassed cumulative inflows into the debt markets Asia

60 USD bn

2022 2023 2024 2025 2026(YTD)

20 ClaudioEmergingPironAsia FI/FX Strategist

Merrill Lynch (Singapore)

0 +65 6678 0401

claudio.piron@bofa.com

-20

-40

-60

-80

-100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: BofA Global Research, Bloomberg. Note: Each line shows for India, Indonesia, Thailand, Korea the aggregate cumulative debt and

equity flows, only equity flows for Taiwan and Philippines and only debt flows for Malaysia.

BofA GLOBAL RESEAR

• By the end of Apr-26, cumulative flows into EM Asia (ex-China) debt and equity

markets have reversed course and turned significantly negative at USD69.32bn. The

ongoing Iran conflict is sustaining global uncertainty and elevated oil prices. This is

raising upside risks to inflation and triggering risk-off sentiment amongst foreign

investors, turning them into net sellers of EM Asian assets.

• The sharp deterioration in the performance of portfolio flows in Mar-26 continued

in April 2026. (Exhibit 1).

• In Apr-26, the gap between the equity and debt flows widened as the magnitude of

cumulative equity outflows substantially surpassed debt inflows (Exhibit 8).

Foreign cumulative equity flows of USD70.37bn dominated the EM Asia flows in

April as all countries witnessed outflows led by India, Indonesia, and Philippines

(Exhibit 2).