Asia

Foreign investors sell Asian stocks at record pace as AI trades crowd

Foreign investors sold a record US$137.36 billion of Asian stocks in the first half of 2026, the Straits Times reports. Crowding in artificial-intelligence trades has helped drive the selling.

Electronic screens displaying stock market data
Electronic screens displaying stock market dataPhoto: Alex Luna / Pexels
Straits Times Business2 h ago

Foreign investors sold a record US$137.36 billion of Asian stocks in the first half of 2026, the Straits Times reports. It marks one of the largest outflows from the region's equity markets in recent years.

The report says heavy crowding in artificial-intelligence-linked shares has pushed investors to be more cautious. Some fund managers say they have taken profits as valuations have grown stretched.

Analysts say the direction of flows will depend on global interest-rate expectations and the earnings outlook for the technology sector. Continued outflows could weigh on the region's currencies and equity markets.

AITechAsiaStraits Times Business
This article is an AI-curated summary of the original story published by Straits Times Business. The illustration is a stock photo by Alex Luna from Pexels and is not from the original story.

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