Charts of the Week: Rising Interest Rates & October Tech Risk-Off

Sticky inflation and higher energy prices pushed bond yields higher, triggering an October sell-off in MXAPJ led by Korea, Taiwan and Tech. MXAPJ fell 4.9%, with India, the Philippines and Australia (each +2%) outperforming Korea (-16%), Indonesia (-14%) and Taiwan (-5%). EM Asia ex-China recorded a historic weekly foreign outflow of US$28bn, including a record US$19bn from Taiwan, while Korea saw US$8.3bn of foreign selling. Foreign ownership of Korea semiconductors has fallen to about 2.5 standard deviations below its historical average. Korea leveraged ETF AUM has dropped to US$15.5bn from a US$53bn peak in June, while Taiwan remains relatively stable at around US$12bn;