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Foreign investors turn net buyers to Taiwan as Korea sells off
Taiwan attracted $1.7 billion in foreign inflows so far this month, reversing a six week selling streak, while Korea saw $6.2 billion of net selling over the same period.
Foreign investors have shifted toward Taiwan stocks over South Korea after an AI driven selloff, with Taiwan seen as steadier as the two AI bellwether markets attempt to recover from July’s rout, according to data compiled by Bloomberg and cited by LiveMint Markets.
Bloomberg data show foreign investors became net buyers of Taiwan stocks last week, ending a six week selling streak. They accumulated $1.7 billion so far this month, while net selling reached $6.2 billion from Korea over the same period.
The flows reflect growing caution about a return to AI positions amid doubts about when some companies’ spending payoffs will materialize. Some investors also described Taiwan as less prone to sharp surges and more reliant on diversified, fundamental earnings prospects.
LiveMint Markets cited Grantham Mayo Van Otterloo portfolio manager Warren Chiang, who said Taiwan firms are high quality and that the market is not excessively risky from a fundamental perspective. Bloomberg-compiled estimates cited in the coverage also show forward earnings revisions for Taiex companies rose 9.5% last month, while Kospi revisions were revised 7.4% higher, with Taiwan’s revision moving ahead of Korea’s for the first time in nearly a year.
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