Asian Tech Stocks Take a Hit as Global AI Fears Spread

Key Highlights

• Sharp Increase in Outflows: Nearly $10 billion withdrawn in the first week of February, up from $4 billion in January.
• Focus on South Korea and Taiwan: High AI-related spending concerns triggered sell-offs.
• India's Turnaround: $0.9 billion net inflow following a U.S. trade deal.
• Southeast Asia: Mixed results with modest gains in Thailand, Indonesia, and the Philippines, while Vietnam saw an outflow.

Detailed Breakdown

South Korea and Taiwan

• South Korea:
• February: $7.5 billion net outflow
• January: $0.4 billion net inflow
• Taiwan:
• February: $3.4 billion net outflow
• January: $0.3 billion net gain

India's Positive Shift

• February: $0.9 billion net inflow
• January: Record $4 billion outflow (highest in five months)
• Driver: U.S. trade deal reducing tariffs from 50% to 18%

Southeast Asia

• Thailand: $0.3 billion net inflow
• Indonesia: $0.1 billion net inflow
• Philippines: $0.02 billion net inflow
• Vietnam: $0.2 billion net outflow

Market Sentiment

• Caution in Tech: Investors diversifying amid AI hype.
• Trade Agreements: Easing geopolitical concerns and attracting capital.