Asian Markets Experience Significant Outflows Amid US-Iran Tensions

Asian equity markets have experienced substantial outflows, with nearly $11 billion withdrawn from developing Asia, excluding China, in just one week. According to NS3.AI, this trend is largely driven by the ongoing US-Iran crisis, which has heightened fears over energy supply disruptions. Major indices such as the Nikkei, Kospi, and Sensex have seen significant declines, while the MSCI Asia Pacific Index recorded a 6.3% drop over the week, marking its steepest fall in nearly six years. Despite the sell-off by global and institutional investors, recent data indicates that retail investors continue to actively purchase equities and options. This divergence in investor behavior highlights the contrasting strategies being employed in response to the current geopolitical tensions.