NEW YORK ( TheStreet) -- Earlier in the month, I wrote about the troublesome scenarios developing in peripheral emerging market economies, and this week's performance in Southeast Asian equities helps confirm the bearish outlook. Relative to global stocks, the benchmark MSCI Southeast Asia Index has entered bear market territory and is falling at its fastest rate in more than a decade -- down 11% this month and more than 20% from its yearly high.
This month, net outflows in the Philippines are approaching $350 million. In Indonesia, this number grows to $570 million while in Thailand net outflows are much higher at $1.3 billion. This essentially suggests that no progress is being made in the current account balances in Southeast Asia, and these problems only grow when we look at larger economies like India .