Inflows

• Foreign investors injected a net $11.51 billion into the bond markets of South Korea, Indonesia, Malaysia, Thailand, and India in June. • This surge represents the strongest monthly inflow since November 2025, driven by falling oil prices and a booming global tech cycle. • The shift occurred as equity market volatility pushed investors toward the relative safety of sovereign debt and improved regional economic outlooks.

• The Star Market 50 Index experienced a 10% decline over a two-week period, signaling a sharp pullback in Chinese technology stocks. • Analysts from UBS and HSBC Jintrust characterize this drop as a "temporary blip" rather than a long-term trend. • Market stability is expected due to strong earnings reports from AI companies and a growing trend of global investors diversifying into Chinese assets.

• Indian stock markets climbed during early trade, driven primarily by significant inflows from foreign funds. • Major gainers included tech and consumer giants such as Titan, Infosys, Tech Mahindra, HCL Tech, and Tata Consultancy Services, while Larsen & Toubro saw declines. • This positive domestic momentum contrasts with a sharp downturn in Asian markets, where South Korea’s Kospi plummeted 7% and indices in Japan, Shanghai, and Hong Kong also traded lower.

• Foreign Portfolio Investors (FPIs) shifted to a buying trend in the Indian financial sector during the second half of June. • FPIs purchased financial stocks worth ₹14,634 crore, reversing a trend from the first half of the month where they sold ₹11,263 crore. • This surge represents record fortnightly inflows, signaling a strong return of foreign confidence in India's financial markets.

• Global equity funds have recorded their third consecutive week of inflows as investors capitalize on a recent market dip. • The surge is primarily driven by strong confidence in the AI-linked rally, with significant gains seen in European and Asian markets. • In contrast to the global trend, U.S.-based funds experienced outflows during this period.

• Foreign investors withdrew capital from India-focused funds during the March quarter, redirecting investments toward AI-driven markets. • Capital flows shifted primarily toward technology hubs in Korea and Taiwan to capitalize on the global artificial intelligence boom. • This trend highlights a strategic pivot by global investors prioritizing high-growth AI sectors over traditional emerging market opportunities.

• Singapore's listed technology manufacturers are experiencing significant gains and increased institutional inflows driven by the global artificial intelligence boom. • The growth is fueled by massive capital expenditure from global tech giants who are increasing demand for advanced semiconductors and chips. • This trend highlights Singapore's strategic position in the global tech supply chain, attracting investment into local manufacturing capabilities.