Morningstar's latest data highlight increasingly divergent investor behaviour across Asia-Pacific, with steady inflows in Australia, India and Hong Kong contrasting with persistent outflows from China and a reversal in Japan.
Morningstar reported that Asia-Pacific ETF assets rose to a record US$2.7 trillion in the second quarter of 2026, even as the region recorded US$63 billion of net outflows. Morningstar concluded that ETF adoption across Asia-Pacific continues to follow different paths across markets The divergence was primarily driven by sustained redemptions from China-domiciled equity ETFs, which offset positive inflows across several other markets. Morningstar noted that rising equity markets and continu