Philippines markets are still waiting to see President Duterte's stimulus policies come to fruition. Photo: Reuters

The Philippines stock market is the only Asian emerging market to see foreign fund outflows this year, but investors are hoping a proposed tax plan could change that.

Funds from the proposed tax package are essential for the funding of President Duterte’s ambitious infrastructure plans, but passage of the reform is far from certain.

Despite the remaining uncertainty, there are signs that foreign funds are warming to the market with US$136 million inflows to Philippines stocks this week.

The recent rally, however, has led to some profit taking on Thursday, and the market will likely wait to see follow through on stimulus to instill more sustainable confidence.