A probe into former China securities regulator Fang Xinghai underscores how opaque policy communication and sudden regulatory actions cause sharp market swings, unsettling foreign investors even as AI advances and index inclusions offer limited optimism.
The South Korean won weakened against the U.S. dollar on Monday, closing at 1,429.8 won per dollar, as foreign investors became net sellers of local stocks, offloading 2.8 trillion won worth. This occurred despite recent foreign exchange interventions by the U.S. and Japan.
Indian stock market anticipates a pivotal week driven by the Reserve Bank of India's interest rate decision, ongoing US-Iran conflict impacting crude oil, and Q1 FY27 corporate earnings. Domestic macros and foreign investor activity also remain key factors.
Foreign portfolio investors (FPIs) became net buyers in Indian equities in July, investing Rs 20,200 crore after four months of outflows. Attractive valuations, improving corporate earnings, and a better global investment environment, including stability in the rupee and large-cap stocks, drove the comeback.
The Indian rupee gained 0.1% against the US dollar on Thursday, opening at 96.49, despite facing pressure from rising crude oil prices. Traders expect continued strain, with the Reserve Bank of India (RBI) intervention anticipated to limit sharper losses. Geopolitical tensions are driving oil prices higher, offsetting previous RBI measures.
Seoul stocks surged late Wednesday morning, with the KOSPI rising 5.54% to 7,121.84, driven by foreign investors acquiring tech heavyweights like Samsung Electronics and SK hynix. The rally followed overnight gains in U.S. stocks, particularly semiconductors, as markets anticipate major tech earnings to gauge AI investment returns.
Foreign investors were net sellers on South Korea's stock markets this month, offloading 12.1 trillion won on the main bourse, but remained net buyers of ETFs, including KODEX Leverage, to mitigate risk amid heightened market volatility and new government regulations.
Foreign investors are increasingly favoring Indian bonds over equities, driven by India's removal of tax on overseas bond investors and the anticipated inclusion in the Bloomberg Global Aggregate Bond Index by early 2027. This move is expected to attract $25-27 billion in inflows by FY2028, helping narrow India's balance of payments deficit and shore up the rupee.
Foreign investors have invested over $1 billion in Indian equities in the past week, signaling a bullish trend. Goldman Sachs and Citigroup project further inflows due to a stable rupee and improved earnings expectations, boosting the NSE Nifty 50 index.
Foreign investors net sold over 1.7 trillion won in the KOSPI market on the 13th due to weakened overall investment sentiment, but the scale has somewhat decreased compared to the previous 'fire sale.' Securities firms predict that meaningful foreign capital inflow will only occur with a re-evaluation of semiconductor stocks.
The Indian Rupee depreciated 39 paise against the US dollar, opening at 95.72 and falling to 95.77 due to soaring crude oil prices and escalating Middle East tensions. Concerns over global crude supply disruptions, fueled by Iran's actions in the Strait of Hormuz, dampened market sentiment.
Foreign portfolio investors (FPIs) have shifted from debt to equities in July, investing $2.59 billion in the first 10 days. This marks a significant sentiment change from earlier in the year, driven by a steady rupee and a shift from semiconductor investments.
Foreign investors' stake in Samsung Electronics has fallen to a 17-year low, while individual investors are increasingly using borrowed money to invest in semiconductor stocks, reaching record highs in credit balance.
Foreign investors in India are receiving unexpected tax reassessment notices, even for transactions where no profit or dividend was earned. The notices, potentially triggered by remittance data and questioning the absence of income tax returns for share purchases, are causing confusion and compliance burdens.
Foreign Portfolio Investors (FPIs) withdrew Rs 49,340 crore from Indian equities in June, pushing total outflows for 2026 to Rs 2.7 lakh crore. This was driven by global risk aversion, US yields, and valuation concerns, though a US-Iran peace deal later eased selling. FPIs, however, invested in Indian debt.
Foreign investors sold off 148.3 trillion won in the KOSPI in the first half, putting pressure on the market. Analysts predict this trend will continue in the second half due to profit-taking after a sharp rise and a strengthening dollar.
Foreign investors offloaded a record 47 trillion won (US$30.4 billion) in South Korean stocks in May, driven by Middle East unrest and profit-taking, surpassing March's previous record. Concurrently, they bought a net 11.72 trillion won in local bonds.
India's equity markets are expected to rebound significantly as foreign investors, led by BlackRock's Ben Powell, recognize the country's long-term growth potential, driven by normalizing oil prices and a broader repricing of India's growth story.
The Indian rupee depreciated by 2 paise to close at 94.60 against the US dollar on Tuesday, halting a two-session gain. Despite easing crude oil prices and optimism over a US-Iran peace deal, foreign capital outflows from Indian equities capped the rupee's rise.
Kuwait has launched a new 15-year residency program for eligible foreign investors, business owners, and senior executives to attract global capital and talent. The initiative aims to boost FDI, create jobs, and diversify the economy away from oil, aligning with regional trends like the UAE's Golden Visa.
Foreign investors are reallocating billions of dollars within India, moving capital from large-cap companies to mid-cap and growth-focused stocks. This shift indicates a preference for growth potential over traditional value investments, with overall participation in Indian equities increasing.
Foreign investors sold a record $31.83 billion in Korean stocks in May, continuing a selling trend from April. They also bought $5.68 billion in bonds, resulting in a net sale of $26.15 billion in local securities.
Foreign investors are actively trading single-stock leverage products for Samsung Electronics and SK Hynix, buying and selling them repeatedly ('ping-pong' trading) while net selling the underlying stocks. This strategy aims to maximize profits by rebalancing portfolios and capitalizing on short-term price fluctuations in the volatile semiconductor market.
India's government and RBI introduced measures to attract foreign portfolio investors and non-resident funds into government bonds and bank deposits, including tax exemptions and risk mitigation strategies, leading to a significant rupee gain.
