Foreign Outflows Cool AI Markets in Taiwan and South Korea While India Sees Continued Exits

Taiwan and South Korea are experiencing early investor outflows and redemptions after attracting significant AI-driven fund inflows of $23.5 billion and $28.4 billion respectively since June.

Over the past six weeks, Taiwan recorded outflows of $796 million, South Korea $3.17 billion, and India $1.48 billion, with India having seen total outflows of $4.5 billion since June.

Market analysts note that while Taiwan and South Korea face profit-taking and volatility, India has yet to capture a sustained shift in foreign institutional investor preference.