The numbers are hard to ignore. Foreign investors yanked $46 billion out of emerging market equities in June alone, and two countries did most of the heavy lifting: South Korea and Taiwan.
Together, they account for roughly half the weight of the MSCI Emerging Markets Index, with Taiwan at approximately 26.6% and South Korea at approximately 23.3%.
What actually happened in June
Foreign investors sold $27.08 billion worth of Asian equities during the month, with South Korea absorbing $12.63 billion of those outflows and Taiwan contributing around $8 billion.
The selling pressure was severe enough that South Korea’s KOSPI index triggered circuit breakers after sell-offs exceeding 8% during the most volatile sessions.
