Foreign outflows from Taiwanese stocks hit a record in October as a global selloff in artificial intelligence play pushed the island’s benchmark closer to a technical correction.
Overseas investors sold $31.78 billion of Taiwanese shares on a net basis last month, surpassing the previous all-time high hit in March, according to data compiled by Bloomberg.
The exodus underscores growing cracks in the global AI trade as investors grapple with rising borrowing costs, soaring AI spending and disappointing earnings. Taiwan’s equity benchmark fell as much as 1.8% in early trading on Monday, extending losses after the Nasdaq 100 Index tumbled 3.5% on Friday, its worst day since June, and the Philadelphia Semiconductor Index plunged 7.2%.
The heavy outflows from equities spilled into the currency market, sending the Taiwan dollar down about 2% against the greenback in October, its steepest monthly drop since March, though US dollar sales by state-run banks helped cushion the blow.
Written by: Abhishek Vishnoi — With assistance from Neha D’Silva @Bloomberg
The post “Foreigners Make Record Withdrawal From Taiwan Stocks on AI Rout” first appeared on Bloomberg
