Asian equities recorded the largest monthly foreign inflow in 15 months in May, with foreign investors buying approximately $10.65 billion in equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines, according to LSEG data. This turnaround followed a 90-day pause for most countries on higher U.S. tariffs after President Donald Trump's initial announcement in April, which eased concerns about the impact on Asian exports and regional supply chains. South Korean equities led regional gains, with the Kospi index rising 1.49% to 2,812.05 points after the presidential election. The Kosdaq index increased by 0.79%. President Lee Jae-myung is expected to implement expansionary fiscal policies, including a supplementary budget in July. Foreign inflows into South Korean stocks hit their highest level since March 2024, ending a leadership vacuum. Technology and AI-related stocks drove advances in China and Hong Kong. The Hang Seng Index rose 1.07%, the Hang Seng Tech Index advanced 1.9%, and the Shanghai Composite Index gained 0.23%. The CSI300 index also rose 0.23%. Gains were supported by regulatory backing from the China Securities Regulatory Commission and the Ministry of Industry and Information Technology, as well as a new stablecoin law in Hong Kong. Notable stock moves included Alibaba up 3.23% and Kuaishou up 5.01%. In Taiwan, foreign inflows totaled $7.28 billion, the largest since November 2023. India attracted $2.34 billion, the highest since September 2024, with the SENSEX up 0.5%. Indonesian and Philippine stocks also saw net inflows, while Thai equities experienced net selling. The MSCI Asia-Pacific Index is up 8.8% year-to-date, outperforming the MSCI World Index (up 5.4%) and the S&P 500 Index (up 0.98%). Bank of America reported $75 billion in gold inflows year-to-date, a record, and cash saw its largest weekly inflow since January at $94.8 billion. U.S. equities have seen outflows for three weeks, while European equities have had inflows for eight weeks. Goldman Sachs raised its earnings growth forecast for MSCI Asia Pacific ex-Japan to 9% for both 2025 and 2026, citing $600 billion in AI investments from Saudi Arabia to U.S. firms expected to benefit Taiwan and Korea.