Foreign investors pulled $137.36bn from Asian equities in 1H 2026, a record
outflow, with Korea and Taiwan seeing withdrawals of $70.8bn and $29.6bn
respectively. A rally in AI chip makers concentrated gains and prompted
portfolio rebalancing, with Korea’s KOSPI nearly doubling and Taiwan’s Weighted
Index up 62% led by TSMC, Samsung and SK Hynix. Analysts say the selling largely
reflects position adjustment away from an unusually concentrated rally rather
than broad risk aversion. Capital is rotating from oversized chip leaders into
downstream suppliers and lower‑valuation markets, notably Southeast Asia, as
investors reassess tech exposure and pursue broader diversification, according
to asset managers.
