Global Investment Funds Double Down on Asia with Record Purchases
The MSCI Emerging Markets Index is up 11% year-to-date, while South Korea’s Kospi has surged more than 30%.
Quick overview
- Goldman Sachs reports significant investment flows into Asian markets, particularly in technology and industrial sectors, amid a weakening U.S. dollar.
- Emerging and developed Asian markets experienced the largest net buying by investment funds last week, driven by optimism in AI infrastructure companies.
- The MSCI Emerging Markets Index has risen 11% year-to-date, contrasting with a slight decline in the S&P 500.
- Hedge funds have been selling U.S. real estate equities for three consecutive weeks, indicating caution in the U.S. property sector.
According to the trading desk at Goldman Sachs Group, the region is standing out against the backdrop of a weakening U.S. dollar, with flows moving decisively into information technology, industrials, and other key sectors.
Emerging and developed Asian markets recorded the largest net buying by investment funds last week, fueling broad-based optimism across the region—particularly around artificial intelligence (AI) infrastructure companies. This marked the biggest net purchase ever recorded by Goldman’s Prime Services trading desk, which has tracked these flows since 2016.
As investors respond to the softer U.S. dollar, Asia has emerged as the main destination for global equity flows, with emerging markets leading the trend.
From a sector perspective, analysts noted that information technology, industrials, consumer staples, and materials saw net buying, while consumer discretionary, communication services, and financials were the most heavily sold sectors.
Emerging Markets Gain Momentum in 2026
The MSCI Emerging Markets Index is up 11% year-to-date, while South Korea’s Kospi has surged more than 30%, driven by major manufacturers such as Samsung Electronics and SK Hynix Inc.. This contrasts sharply with a 0.1% decline in the S&P 500 as of last Friday’s close.
Goldman analysts also highlighted a pronounced positioning imbalance in the market, with long positions outpacing short hedges by a ratio of 8.4 to 1.
Meanwhile, hedge funds sold U.S. real estate equities for the third consecutive week, at the fastest pace since September 2022, signaling continued caution toward the United States property sector.
If you want this condensed into a wire-style market brief, institutional flow note, or macro investment commentary, I can restructure it into a shorter professional format.
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