Feb 10 (Reuters) - Foreign outflows from Asian stocks rose sharply in the first week of February as South Korea and Taiwan came under pressure from a global selloff in high-growth technology shares on concerns over the hefty AI-related capital spending.
Foreign investors sold a net $9.79 billion worth of stocks in the week ended February 6, compared with roughly $3.9 billion net disposals in the whole of January, according to LSEG data for stock markets in South Korea, Taiwan, Thailand, India, Indonesia, Vietnam and the Philippines.
The U.S. Nasdaq Composite fell as much as 4.27% last week. Amazon slid about 12.11% on worries over a jump of more than 50% in its 2026 capital expenditures forecast, intensifying worries over AI-driven investment across the tech sector.
"This shift in sentiment weighed on Asia tech stocks as well," Nomura said in a report.
Foreigners sold $7.48 billion worth of South Korean stocks in the week, compared with a monthly inflow of $446 million in January.
Taiwan stocks also suffered a net $3.43 billion foreign divestment in the most recent week after having received $306 million in foreign inflows last month.
"This past week's moves in stocks reinforce, in our view, the message of maintaining some diversification and balance in portfolios, especially when positioning is crowded in some popular thematics," the Nomura report said.
Cross-border investors, meanwhile, added a net $897 million worth of Indian stocks on optimism over a trade deal with the United States that cuts U.S. tariffs on Indian goods to 18% from 50%.
Foreigners had sold $3.98 billion worth of Indian stocks in January, the most in five months.
"As such, it has to be assumed that the geopolitical cloud overhanging Indian equities, especially for foreign investors, has eased," said William Bratton, the head of cash equity research, APAC at BNP Paribas.
"We see the near-term risk/reward balance (for India) as now firmly skewed to the upside," BNP Paribas' Bratton said.
Equities in Thailand, Indonesia and the Philippines, meanwhile, attracted $332 million, $103 million and $23 million, respectively, in foreign inflows last week.
Foreigners sold shares worth $236 million in Vietnam.
Reporting by Gaurav Dogra in Bengaluru; Additional reporting by Patturaja Murugaboopathy; Editing by Janane Venkatraman
Source: Reuters