Foreign investors are pulling record amounts of money out of Asian equities in the first half of 2026, selling shares across multiple markets. Business Line reports net outflows of about $137.36 billion from stocks in South Korea, Taiwan, India, Indonesia, Thailand, Vietnam, and the Philippines over the first six months of the year. Interaksyon similarly says foreigners dump Asian stocks at the fastest pace in at least 16 years during the same period, citing these broad regional withdrawals.
Both sources point to the same overarching driver: an AI-led rally in “winners,” which appears to be attracting crowded positioning. Interaksyon specifically notes that while AI chipmakers have been rallying, investors still sell these stock winners, suggesting profit-taking and rebalancing rather than purely fundamental deterioration. The heaviest outflows are reported in South Korea and Taiwan, even as parts of the AI trade remain strong.
Overall, the reporting is consistent on the magnitude of outflows, the countries affected, the timing (first half of 2026), and the broad link to the AI-driven market run and subsequent selling.
