Asian stock markets are seeing major foreign money outflows — more than US$10 bn in one week — as mate enthusiasm around the AI and technology boom cools. Countries such as South Korea and Taiwan accounted for the bulk of the withdrawal, largely tied to weakness in leading AI‑related companies. The data technology index for Asia ex‑Japan sank over 4% last week after a six‑month surge of 62%.
Insights & Leverage:
- This suggests that momentum in tech/AI may be peaking (or at least plateauing). For you, it may mean less hedge‑currency style chase stocks, more selective buying.
- There may be value opportunities in Asian stocks outside tech — regions or sectors overlooked while everyone chased AI.
- With outflows concentrated, technical levels may be weak; consider short‑term tactical trades in overbought tech names, or hedged plays (for example long diversification, short tech).
- For your trading server: the “sweet spot” might be in identifying oversold non‑tech Asian names or breakout plays in sectors benefiting from rotation (consumer, infrastructure).
- If you intend to move to Taiwan, this headline also gives you a local market lens: being aware of how foreign flows impact local valuations, sentiment, resources.
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