Asia has once again taken center stage in the interests of global hedge funds, as last week witnessed the largest surge in trading volumes in Asian markets in over five years, according to a recent memo from Goldman Sachs seen by Reuters.

♦️ Between June 6 and June 12, bullish bets by hedge funds in Asia reached their highest levels since September 2024, surpassing bearish bets, indicating a renewed wave of optimism towards Asian markets, according to the memo released on Friday.

♦️ Purchases were primarily concentrated in shares of Japan, Hong Kong, Taiwan, and India, while mainland Chinese stocks faced a wave of short selling.

♦️ These movements came at a time when the upward momentum in Asian markets continues, supported by signs of easing in the trade war between Washington and Beijing, following high-level talks in London, in addition to the election of a market-friendly president in South Korea, which encouraged capital inflows.