International investors have sold more than US$17 billion ($23.27 billion) worth of stocks in Southeast Asia’s main markets this year, set for their biggest annual withdrawal in at least a decade, according to data compiled by Bloomberg. The re-introduction of stricter measures to combat Covid-19 can exacerbate those outflows by dashing hopes that a floor has been reached in economic activity.
A crash in Indonesian stocks is evoking memories of market meltdowns in Southeast Asia in the depth of the March swoon.
Regional shares slipped on Thursday after Jakarta’s surprise return to a lockdown sent Indonesian stocks 5% lower before triggering a brief trading halt. Some market participants are worried that such a move can further spook foreign funds who have been selling Asean stocks at an exceptional pace.
