Data from Goldman Sachs Global Investment Research's Asia Pacific Portfolio Strategy Team shows that as of August 31, 2026, foreign capital has seen a net outflow of $173.5 billion from emerging Asian equities outside of China since 2025. Specifically, South Korea saw a net outflow of $109.4 billion, Taiwan $36.3 billion, and India $23.4 billion. During the same period, Asian domestic institutional funds saw a net inflow of approximately $114 billion, with India, South Korea, and Taiwan experiencing net inflows of $59.7 billion, $29.1 billion, and $22.1 billion, respectively. A more pronounced expectation gap emerged at the price level. This year, South Korean and Taiwanese equities have risen by 90.6% and 62.0% respectively in dollar terms. Despite continued foreign capital outflows, domestic funds and earnings expectations related to AI and semiconductors continue to support market gains. India, on the other hand, primarily relied on domestic institutional funds to absorb foreign capital outflows.
