March 24 (Reuters) - Asian stocks have seen heavy

foreign outflows so far in March as disruptions to Middle East

energy supplyfrom the U.S.-Israeli war with Iran stoked fears of

an oil shock and stagflation risks.

Foreign investors have sold a net $50.45 billion worth of

regional equities so far this month, on track for the largest

monthly outflows since at least 2008, LSEG data covering

exchanges in South Korea, Taiwan, Thailand, India, Indonesia,

Vietnam and the Philippines showed.

"Outflows from EM Asia markets were driven by the

broad-based risk-off sentiment due to the Middle East conflicts,

as most of EM Asia economies are net importers of energy

products," said Jason Lui, the head of APAC equity and

derivative strategy at BNP Paribas.

Benchmark Brent crude oil prices surged as much as

65% this month to $119.5 a barrel.

Abdelaziz Albogdady, a market research and fintech strategy

manager at brokerage FXEM, said that the outflows were

exacerbated by the ensuing rise in global yields and a

reassessment of rate expectations, in addition to the potential

economic impact on net oil importers.

Recent policy signals from major central banks indicate that

interest rates are likely to remain on hold or move higher if

the conflict continues to heap pressure on prices.

Taiwanese stocks have seen about $25.28 billion in outflows

month-to-date, the largest in at least 18 years, while South

Korea and India have recorded about $13.5 billion and $10.17

billion in net foreign sales, respectively.

"Outflows in Taiwan and South Korea were mostly focused on

AI/technology stocks given they have accumulated sizable gains

during the AI boom," BNP Paribas' Lui said.

Tech hardware stocks in Korea and China, however, remain

among the most promising segments, seeing limited immediate

direct impact from the Middle East conflict or higher energy

prices, analysts at Nomura said in a note on Monday.

Thailand, the Philippines and Vietnam also recorded net

outflows of $1.35 billion, $182 million and $21 million,

respectively, while Indonesia attracted net inflows of $59

million over the same period.

Lui said EM Asia markets are likely to remain volatile in

the near-term amid contradictory headlines and elevated

geopolitical risks.

"Unlike the Liberation Day scenario during which the U.S.

can unilaterally decide on the tariff threshold, the current

energy shock may take longer to normalize given the disruption

to the production facilities in the Middle East."