KOSPI in Focus: Global Funds Exit Asia at Four-Year High Amid Iran Tensions

• Global funds are withdrawing money from emerging Asian stocks at the fastest rate in over four years.
• South Korea's KOSPI index is in focus due to a record one-day decline and widespread selloff in regional stocks.
• The MSCI Asia Pacific Index fell over 6% this week, its worst decline in six years, underperforming the S&P 500.
• Investors sold a net $11 billion from emerging Asia (excluding China) this week, the highest outflow since March 2022.
• This reverses the "Sell America, Buy Asia" trade, driven by reevaluation of risk due to the increasing war in Iran.