Southeast Asia Equity Inflows Rebound as Global Funds Return on Cheap Valuations

Southeast Asia equity inflows picked up in December as global funds bought about USD337m of regional stocks, marking the largest monthly inflow since September 2024, according to Bloomberg-compiled data cited by local media.

Indonesia and Thailand led the rebound, though net outflows for 2025 still total around USD15bn.

Strategists said the region’s relatively low exposure to artificial intelligence-linked stocks has weighed on performance but also makes Southeast Asia an alternative as investors grow wary of crowded tech trades.

Vietnam could receive a further boost after FTSE Russell decided to reclassify it to secondary emerging market status effective Sept 21, 2026, pending a March 2026 review, supporting the outlook for Southeast Asia equity inflows.