Taipei: Foreign institutional investors in Taiwan recorded a substantial net outflow of funds in March as the war in the Middle East roiled global financial markets, according to Financial Supervisory Commission (FSC) data.

According to Focus Taiwan, foreign institutional investors reported a net fund outflow of US$3.055 billion in March, a significant reversal from a net fund inflow of US$11.51 billion in February, as per FSC data. The conflict initiated by the U.S. and Israel against Iran at the end of February adversely impacted Taiwan's stock market, leading to these fund outflows by foreign institutional investors, the FSC noted.

In March, the Taiex, the benchmark index of the Taiwan Stock Exchange, experienced a decline of 6.17 percent, following the selling of a net NT$968.21 billion (US$30.45 billion) in shares by foreign institutional investors. Despite this setback, foreign institutional investors managed to achieve a net fund inflow of US$17.852 billion in the first quarter of 2026, the FSC reported.

Additionally, since the Taiwanese government lifted the restriction on foreign institutional investments in the local equity market at the end of 1990, these investors have accumulated a net fund inflow of US$338.012 billion, according to FSC data.