Foreign investors pull out $50 billion from Asian equities in October on AI, cash burn woes
Foreign investors sold $49.8 billion in Asian equities last month as doubts over AI spending and profitability hit tech-linked stocks, LSEG said.
- Foreign investors pulled nearly US$50 billion out of Asian equities in October, marking the largest monthly outflow in four months across South Korea, Taiwan, India, Indonesia, Thailand, Vietnam, and the Philippines.
- Concerns over AI-linked hyperscalers' cash burn and fears of tougher artificial intelligence regulations following Democrats' election victories last week triggered the regional tech-linked sell-off.
- Investors sold a net US$30.7 billion of Taiwanese stocks and US$14.6 billion of South Korean shares, while Indian stocks recorded a second consecutive monthly foreign outflow totaling US$3.6 billion.
- So far in November, foreigners have offloaded a further US$22.6 billion from these markets, though cross-border investors simultaneously invested a net US$5.7 billion in local equities.
- HSBC head of equity strategy for Asia-Pacific Herald van der Linde upgraded India to overweight, citing resilient earnings, while BNP Paribas strategist Scarlett Liu noted relative market resilience.
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Foreign Investors Pull $49.77 Billion From Asian Stocks as AI Investment Concerns Rattle Markets
Foreign investors withdrew a net $49.77 billion from seven Asian equity markets in October, the largest monthly outflow since June. Concerns over artificial intelligence spending, ... The post Foreign Investors Pull $49.77 Billion From Asian Stocks as AI Investment Concerns Rattle Markets first appeared on [your]NEWS.
Foreign investors pull out $50 billion from Asian equities in October on AI, cash burn woes
Foreign investors pulled nearly $50 billion out of Asian equities, the largest monthly outflow in four months, in October as concerns over hyperscalers' cash burn and fears of tougher AI regulations ahead of US midterm elections triggered a selloff in regional tech-linked stocks.
Foreign investors withdrew nearly $50 billion from Asian stock markets during October, in the largest monthly exit wave in four months, amid fears of high capital spending by major AI companies and a decline in the profitability of infrastructure investments. According to LSG, foreign investments from South Korea, Taiwan, and India's stock markets are net exits [...] foreign investments of $50 billion from Asian markets written in the Stock Exch…
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