showed notable outflows from equity funds focused on emerging Asia, with China, South Korea, Taiwan, and parts of Southeast Asia among the most affected. Analysts attributed the withdrawals to weak corporate earnings forecasts, subdued export demand, and ongoing uncertainty surrounding global trade and supply chains. China continued to face sustained pressure as investors reacted to concerns over property sector weakness, muted consumer demand, and regulatory uncertainty. Despite targeted policy support from Beijing, foreign investors remained cautious, limiting new inflows and maintaining defensive positions. In other parts of Asia, higher global interest rates and a strong U.S. dollar also played a role. As yields on U.S. assets remained attractive, capital shifted away from emerging markets, particularly those perceived as more vulnerable to external shocks or currency volatility. Regional equity benchmarks posted mixed performance, with some markets experiencing heightened volatility as foreign selling weighed on valuations. Currency markets also reflected the trend, with several Asian currencies coming under pressure amid reduced capital inflows. Fund managers said the withdrawals do not necessarily signal a long-term retreat from Asia but rather a reassessment of risk amid short-term uncertainty. “Investors are prioritizing liquidity and stability,” said one Asia-based portfolio manager. “That has led to a temporary pullback from markets seen as more sensitive to global developments.” Despite the near-term pressure, some analysts noted that Asia’s longer-term fundamentals remain intact. Structural growth drivers, including expanding middle classes, technological development, and regional trade integration, continue to support the investment case for the region. Policymakers across Asia have signaled readiness to respond if market conditions deteriorate further. Central banks have emphasized financial stability while balancing inflation control and growth support, though room for aggressive easing remains limited in several economies. Looking ahead, analysts said investor sentiment will largely depend on global factors, including the direction of monetary policy in advanced economies, developments in major geopolitical conflicts, and the strength of global demand. Until greater clarity emerges, market participants expect volatility and cautious positioning to persist across Asian markets. While recent outflows underscore heightened uncertainty, investors and policymakers alike view the current environment as a test of resilience rather than a fundamental shift away from Asia’s role in global portfolios.