Investors’ expectations that vaccine rollouts will help reopen economies in South-East Asia are being dashed for now as countries struggle to contain the highly transmissible delta variant of the virus.
FOREIGN funds are rushing out of South-East 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 US$2.7bil (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.
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