Hedge funds’ bets on Asia hit five-year high, says Goldman

Audio By Carbonatix

Enlarge

By Summer Zhen and Nell Mackenzie

HONG KONG (Reuters) -Global hedge funds posted their biggest jump in trading volumes across Asian markets in over five years last week, a Goldman Sachs note showed.

Funds were buying and short-selling, with bullish positions in Asia between June 6 and June 12 hitting their highest level since September 2024 – outpacing bearish bets, said the Goldman note, published on Friday and seen by Reuters on Tuesday.

Hedge funds bought equities in Japan, Hong Kong, Taiwan and India last week, but were short selling onshore Chinese stocks, Goldman said.

Asian stocks extended their strong rally in June as high-level trade talks between U.S. and China in London raised hopes for a de-escalation of the trade war, while South Korea’s election of a market-friendly new president boosted capital inflows.

Market participants pointed out the trend of de-dollarization as a hedge against further declines in the U.S. dollar also benefited broad Asian markets.

“If you are an international investor, you might start to rotate back to either your own markets or Asia that has been under appreciated,” said Kier Boley, co-head and CIO of UBP Alternative Investment Solutions.

The MSCI Asia-Pacific Index has risen 2.5% this month ,led by gains in Korea and Taiwan stocks. The benchmark has surged 24% since April 7, driven by a 90-day pause on higher U.S. tariffs and signs of progress in trade negotiations.

The share of developed Asia markets in hedge funds’ total exposure tracked by Goldman rose to 9%, ranking in the 94th percentile in the past five years, Goldman said.

(Reporting by Summer Zhen; Editing by Kim Coghill)