Global investors are fleeing Asia's AI-linked markets as Middle East tensions spark oil supply fears. Overseas funds dumped $13.7 billion of South Korean shares last month, with another $3.1 billion exiting this week. Taiwan saw $3.6 billion in outflows, creating the biggest weekly selloff since December.

The exodus has centered on chipmakers that drove Asian markets to record highs. Samsung Electronics faces its worst two-day rout in nearly five decades, while SK Hynix has fallen almost 20% this week. Taiwan Semiconductor Manufacturing dropped more than 5%, reflecting the broad retreat from artificial-intelligence plays.

Market tremors extend beyond equities. Korea's Kospi plunged 12% on Wednesday, on track for its worst day ever. The Korean won tumbled 3.3% against the dollar, the largest single-day loss since 2009. These moves indicate global funds are reducing risk across asset classes amid heightened geopolitical uncertainty.