Foreign selling in Asian equities has accelerated in May as investors turn cautious on war-driven inflation and higher borrowing costs.
LSEG data shows foreign investors sold a net $24.75 billion of regional equities this month, with a record $17.27 billion last week.
The 30-year U.S. Treasury yield hit its highest since 2007, pressuring Asian equities as higher long-term borrowing costs weigh on valuations.
"Higher yields could increase pressure on equities," said Paolo Broccardo, CEO at BankPro.
South Korean stocks saw a record $13.14 billion outflow last week. Taiwan saw $2.88 billion, India $1.35 billion, and Indonesia $184 million.
"Mainland China H-shares, Hong Kong, Korea, and Taiwan equities are most sensitive to yield increases," said Herald van der Linde of HSBC.
However, Indonesian and Thai stocks attracted $511 million and $215 million of inflows in May.
