"The size of the outflows previously, which was the largest since the global financial crisis, likely means foreign investors are now underweight the region," said Khoon Goh, head of Asia research at ANZ.
"A period of inflows is typically seen after such an event."
Foreign investments in Asian equities
Indian equities led the region with inflows of $2.89 billion last month, its highest since November 2019, as the country emerged out of coronavirus-induced lockdowns last month.
However, the country has recorded $377 million in outflows so far this month due to a rapid increase in coronavirus infections in recent weeks.
With over 700,000 cases, India overtook Russia as the third most COVID-19 affected country globally and is just behind the United States and Brazil.
Semiconductors and tech exporter Taiwan received inflows worth $2.83 billion last month on rising demand for telecommuting products as millions of people globally were forced to work at home.
"Taiwan is well positioned to benefit from the post-pandemic tech opportunities, thanks to its leading role in global semiconductor fabrication, established semiconductor supply chain, and strong technology and investment capabilities," DBS Bank said in a report.
Vietnamese equities also received $651 million in inflows last month.
On the other hand, South Korean equities witnessed an outflow of $705 million, much smaller than $3.3 billion in May.
Thailand, and Indonesia also faced some meagre outflows last month.