Nov 7 Reuters Asian equities, excluding China, witnessed sharp foreign outflows in October, as investors wary of the U.S. presidential election outcome reacted to concerns over weakerthanexpected corporate earnings, overvalued stocks and rising bond yields.

According to LSEG data, foreigners offloaded a robust 15.38 billion worth of stocks in India, South Korea, Thailand, Taiwan, Indonesia, Vietnam and the Philippines, registering their largest monthly net sales since June 2022.

Highperforming Indian stocks led regional outflows with a 11.2 billion withdrawal, amid concerns over subdued corporate earnings and a shift in investor preference towards Chinese shares following Beijing39;s stimulus announcement.

Markets have become conditioned to high earnings growth in India as EPS earnings per share grew at an annualised rate of 25 over the last three years. But the growth seems to be losing momentum, said Prerna Garg, an equity strategist at HSBC.

This has coincided with the raft of policy announcements in mainland China that has shifted the investors39; sentiment on the market.

Disappointing thirdquarter results also prompted investors to scale back their exposure to Asian equities, with approximately 57 of large and midcap AsiaPacific companies failing to meet consensus net income estimates, according to LSEG data.

South Korean stocks faced foreign outflows for the third consecutive month with a 3.4 billion withdrawal, while Thai, Indonesian and Vietnamese stocks…