Foreign investors pulled a record amount of money out of Taiwanese stocks in October as a global selloff in artificial intelligence-related shares pushed the island's benchmark index closer to a technical correction. Overseas investors sold a net $31.78 billion of Taiwanese shares last month, surpassing the previous all-time high set in March, according to data compiled by Bloomberg.
The exodus highlights growing cracks in the global AI trade. Investors are grappling with rising borrowing costs, soaring AI spending and disappointing earnings, all of which have weighed on sentiment toward companies tied to the sector. Taiwan's market is heavily weighted toward chipmakers, leaving it particularly exposed to the pullback.
The pressure intensified on Friday when the Nasdaq 100 Index tumbled 3.5%, its worst day since June. The Philadelphia Semiconductor Index plunged 7.2% over the same session, a sharp move that underscored how quickly confidence in chip stocks has deteriorated.
The downturn raises the risk of further declines for Taiwan's market. With global AI-linked shares under pressure and foreign money continuing to flow out, investors are watching closely to see whether the selling will stabilize or deepen in the weeks ahead.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing