The US Federal Reserve’s (“Fed’s”) monetary policy tightening has roiled markets most of this year. The war in Ukraine, which contributed to more persistent and rising inflation and spikes in commodity prices, coupled with a potential slowdown in the Chinese economy from COVID-19 outbreaks, cast a pall on sentiment. But the most disruptive development for markets was the quick pivot by the Fed from its dovish to very hawkish stance. The reaction in ASEAN+3 markets has, thus far, not been as severe as those in the West, and consequently, capital outflows from regional markets have been limited. That said, with recessionary fears lingering and the pace of the Fed’s Quantitative Tightening set to pick up, several factors could play a role in triggering or aggravating capital outflows from the ASEAN+3.