Funds flee Southeast Asia stocks as vaccine push gets urgent

A woman reacts as she receives a dose of the coronavirus disease (COVID-19) vaccine during the mass vaccination program at the Tangerang City Government Center, in Tangerang on the outskirts of Jakarta, Indonesia, June 30, 2021. REUTERS/Ajeng Dinar Ulfiana

FOREIGN funds are rushing out of Southeast Asian equities on concerns a coronavirus resurgence will dent the region’s economic recovery, and a slow vaccine rollout means the selloff may not reverse anytime soon.

Thailand, the Philippines and Malaysia had combined outflows of $2.7 billion (RM11.24bil) from their equities in the April-June period, the biggest exodus since the quarter ended September 2020, according to data compiled by Bloomberg. Funds bought the countries’ bonds instead due to attractive yields.