Hedge Funds Drive Record Asian Trading Volumes on Trade Truce Optimism

Global hedge funds logged their biggest jump in Asian trading volumes in over five years last week, according to a Goldman Sachs note. Between June 6 and June 12, bullish positions in Asia hit highs not seen since September 2024—outpacing bearish bets as funds both bought and shorted across the region.

Key Drivers of the Volume Surge

1. U.S.-China Trade Talks: High‑level meetings in London stoked hopes of a de‑escalation, prompting funds to rotate into export‑linked markets like Japan, Taiwan, and South Korea.

2. South Korea's Election: The victory of a market‑friendly president accelerated capital inflows, boosting the MSCI Asia‑Pacific Index, which is up 2.5% in June and 24% since April 7.

3. De‑Dollarization Trend: As the U.S. dollar weakened, international investors sought diversification by increasing Asian exposures, raising developed Asia's share in hedge‑fund portfolios to 9%—in the 94th percentile over the past five years.

Regional Trading Highlights

• Net Buying: Japan, Hong Kong, Taiwan, and India saw the largest inflows.

• Short Selling: Onshore Chinese equities were the primary targets for bearish bets, reflecting lingering trade‑policy uncertainties.

For a real‑time view of which Asian stocks are moving the most units—and likely reflecting hedge‑fund activity—check out the Market - Most Active API. market-most-active

Top Gainers Amid the Rally

Tech and export‑oriented names led the charge. To see today's leading gainers across Asian markets, consult the Market - Biggest Gainers API. market-biggest-gainers

What to Watch Next:

• Further Trade‑Policy Updates: Any new statements from U.S. or Chinese negotiators can trigger fresh rotation.

• Currency Flows: Monitor the U.S. dollar's trajectory, as further weakness may amplify Asian fund inflows.

• Earnings Season: Upcoming corporate results in key Asian markets could validate or reverse current positioning.

By combining real‑time volume data with gainer leaderboards, investors can gauge where hedge funds are placing their bets—and potentially identify emerging trading opportunities in Asia.