India, Taiwan ETFs Hit Record Outflows Amid Geopolitical Uncertainty

US-listed Exchange Traded Funds (ETFs) focused on Indian and Taiwanese equities experienced record outflows in March, reflecting investor apprehension amidst a complex economic landscape. Data indicates these outflows coincided with significant currency depreciation in both economies, upward pressure on bond yields, and persistent concerns over energy security. Despite these capital movements, the broader Asian equity market demonstrated a notable rebound during the same period. This recovery was largely attributed to burgeoning optimism surrounding a de-escalation of geopolitical tensions across the region, suggesting a divergence between country-specific fund flows and general market sentiment. However, market analysts caution that this rebound may be built on fragile foundations. Underlying economic vulnerabilities, particularly India's recent equity underperformance relative to other emerging markets and Taiwan's susceptibility to energy price volatility and supply disruptions, continue to cast a shadow over investor confidence. These factors are expected to remain key determinants of future capital flows and market stability in the coming quarters.