Hedge Funds Sell Asian Stocks at Highest Rate in a Year
Global hedge funds sold emerging Asian stocks last week at the highest rate in a year as tensions rose. Short selling was heaviest in Taiwan and South Korea.
Global hedge funds offloaded emerging Asian market stocks at the fastest pace in a year last week, as heightened risk aversion triggered a significant retreat from the region. A client note from The Goldman Sachs Group, Inc. revealed that the selling activity was the most intense since April 2025, a month previously marked by the announcement of substantial global trade tariffs by the United States administration.
The divestment, which primarily involved short-selling, was most heavily concentrated in Taiwan, South Korea, and India. In contrast, short-selling pressure on China remained relatively light. This shift occurred as the conflict involving Iran intensified, leading to net selling across all major global regions, with North America and emerging Asia seeing the largest outflows in dollar terms.
