Foreign funds cash out of key Asian emerging markets ahead of Fed meeting

Foreigners are cutting and running in some key Asian emerging markets amid turbulent trading ahead of this week’s Federal Reserve meeting, where policymakers are expected to signal an interest-rate liftoff in March.

Overseas funds have sold a net $3.1 billion worth of shares in Taiwan, South Korea and India so far this week, according to the latest available data compiled by Bloomberg. That follows $4.9 billion of withdrawals last week, the largest since August.

The MSCI Asia Pacific Index has lost more than 5% in two weeks, as rising bets on faster-than-expected monetary tightening and heightened tensions over Ukraine roiled