Global funds are pulling back from emerging markets in Asia after a five-month buying streak, as expectations for US rate cuts dwindle. Overseas investors sold nearly $2.2 billion in equities in April, snapping the longest streak of purchases since 2017. Taiwan leads the outflows, while South Korea sees a net inflow. Concerns about delayed Fed rate cuts, driven by high inflation, prompt worries about emerging market central banks following suit. Higher US rates and rising oil prices exacerbate the situation. Active emerging market funds saw a $2.7 billion outflow in March amid speculation on Fed policy. Notably, they reduced exposure to tech-heavy Taiwan while increasing positions in Saudi Arabia, Turkey, and the UAE.
