The shift is adding a tailwind to a strong start for Asian assets. Inflows into North and Southeast Asian equities have reached US$3.3 billion so far in January, according to data compiled by Bloomberg, set for the largest monthly flows since September. Another US$7.15 billion flowed into emerging market ETFs in the week ended Jan 16, with three-quarters going into Asia-focused funds. Bond markets in Thailand, Indonesia, South Korea and India drew US$3.7 billion this month.
(Jan 26): Emerging Asia is drawing fresh demand as a relative refuge from geopolitical uncertainty elsewhere, even as some immediate risks ease.
US President Donald Trump’s decision to pause tariff threats against Europe over Greenland has calmed markets for now. With concerns persisting over Middle East tensions and US actions in Latin America, investors are moving to markets offering better risk-adjusted returns and fundamentals.
