Short Bets on Asian Equities Keep Piling Up With No Shift in Sentiment in Sight

what happened

Bearish momentum is gaining ground in Asian equity markets, and sentiment has not settled because long positions are almost absent. That is the view of Citi analyst David T. Chew, as reported by Market Talk. According to him, Asia recorded the weakest positioning dynamics globally last week, while new short positions kept accumulating in South Korea's Kospi and Japan's Nikkei.

Chew says net positioning in both indices is moderately bearish, but the more worrying signal is the absence of evidence that a balance is being reached or that sentiment is starting to turn.

At the time of reporting, the Kospi was down 3.8% at 5550.72, and the Nikkei was down 1.0% at 64253.78.

why it matters

For investors, the signal matters because without new buyers, a sustained rebound in Asian markets becomes harder, and pressure on regional indexes persists. Positioning data like this helps show how crowded the short side is and whether the market is ready for a bounce.

market impact

Asian stocks: rising short positions weigh on Kospi and Nikkei

instruments