Funds flow into North and Southeast Asia as geopolitical risk rattles markets
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Money is leaving unstable regions and flooding into North and Southeast Asia, where investors are looking for stronger returns and fewer surprises. Global risks haven’t gone away, but people are shifting their money to places that still look steady. That’s why fund managers are packing up and buying back into Asia. Donald Trump, the 47th President of the United States, decided to pause his tariff threats against Europe over Greenland, and that helped calm some nerves. But even with that, there’s still tension in the Middle East and growing concern over what the U.S. is doing in Latin America. Fresh data from Bloomberg shows $3.3 billion has already gone into North and Southeast Asia stocks this January. That’s the biggest monthly haul since September. At the same time, global ETF flows into emerging markets hit $7.15 billion in the week ending January 16, and about 75% of that went straight into Asia-focused funds. Bonds aren’t being ignored either. In the same month, $3.7 billion has gone into debt markets in India, South Korea, Indonesia, and Thailand. Ray from Aberdeen Investments said, “Emerging Asia is positioned to outperform broader EM this year, even amid heightened geopolitical uncertainty.” He mentioned AI spending, credit conditions, and China’s role in the region. Ray also said Aberdeen had increased their exposure to emerging Asia, especially in Taiwanese and South Korean equities, because they expect those names to benefit directly from growth in the AI sector. Even with tensions between the U.S. and Europe pulling on the dollar, emerging-market stocks and currencies are pushing ahead. Latin America is getting a boost from rising commodity prices, but in Asia, it’s all about earnings potential. Traders are betting that tech-linked profits in the region will beat what they’re seeing elsewhere. China’s exports, trade surplus, and yuan steady the…
Filed under: News - @ January 25, 2026 10:27 pm