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In March 2026, foreign investors withdrew $50.45 billion from Asian equity markets, representing the most significant monthly outflow since 2008. This selloff was triggered by US-Israeli military actions against Iran and the closing of the Strait of Hormuz, which disrupted energy supplies. Key markets, such as South Korea, India, and Taiwan, experienced steep declines, with India's Sensex dropping 14.7 percent year-to-date. Experts caution that volatility will remain, given the ongoing geopolitical tensions.

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00:00$50 billion. Gone from Asian stock markets in a single month.
00:04Since the U.S. and Israel struck Iran on February 28th, foreign investors have been pulling money
00:11out of Asia at the fastest pace since the 2008 financial crisis, fleeing stock markets in South
00:18Korea, Taiwan, India, Indonesia, Thailand, Vietnam, and the Philippines. The reason is
00:26straightforward. Most of Asia runs on imported energy. When the Strait of Hormuz closes and oil
00:32spikes to $119 a barrel, Asian economies face an inflation shock that hits harder and faster
00:38than almost anywhere else on Earth. South Korea's KOSPI fell sharply. India's BSE Sensex is down
00:46nearly 15% year-to-date, the worst performance of any major index globally. Taiwan, Indonesia,
00:53Thailand. All bleeding foreign capital. Analysts at BNP Paribas warn these markets will remain
01:00volatile as long as contradictory headlines from the Middle East keep driving uncertainty.
01:05$50 billion in one month. If the war drags on, that number could double. Asia is not just
01:12watching the Iran war. It is paying for it every single day.
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