HONG KONG, June 17 (Reuters) - Global hedge funds posted

their biggest jump in trading volumes across Asian markets in

over five years last week, a Goldman Sachs ( GS ) note showed.

Funds were buying and short-selling, with bullish positions

in Asia between June 6 and June 12 hitting their highest level

since September 2024 - outpacing bearish bets, said the Goldman

note, published on Friday and seen by Reuters on Tuesday.

Hedge funds bought equities in Japan, Hong Kong, Taiwan and

India last week, but were short selling onshore Chinese stocks,

Goldman said.

Asian stocks extended their strong rally in June as

high-level trade talks between U.S. and China in London raised

hopes for a de-escalation of the trade war, while South Korea's

election of a market-friendly new president boosted capital

inflows.

Market participants pointed out the trend of

de-dollarization as a hedge against further declines in the U.S.

dollar also benefited broad Asian markets.

"If you are an international investor, you might start to

rotate back to either your own markets or Asia that has been

under appreciated," said Kier Boley, co-head and CIO of UBP

Alternative Investment Solutions.

The MSCI Asia-Pacific Index has risen 2.5%

this month ,led by gains in Korea and Taiwan stocks. The

benchmark has surged 24% since April 7, driven by a 90-day pause

on higher U.S. tariffs and signs of progress in trade

negotiations.

The share of developed Asia markets in hedge funds' total

exposure tracked by Goldman rose to 9%, ranking in the 94th

percentile in the past five years, Goldman said.