Virus Surge, China Are Muddying the Bullish Asia Stock Story
- Asian equity gauge set to trail global peers for a third month
- India’s Sensex nears technical correction as infections surge
Photographer: Qilai Shen/Bloomberg
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Having started the year best-placed to benefit from a reopening of the global economy, Asia stock investors find themselves confronting the twin threats of a virus resurgence and policy tightening in the region’s growth engine, China.
The MSCI Asia Pacific Index is on track to underperform its global counterpart for a third straight month in April -- its worst streak since 2019 -- as new infections rocket past other regions. Foreign investors withdrew about $1.8 billion from emerging Asia stocks excluding China last week, according to latest available data compiled by Bloomberg, and global money managers appear less optimistic on near-term prospects.