Asian Tech Stocks Take a Hit as Global AI Fears Spread

Foreign investors pulled nearly $10 billion out of Asian shares in the first week of February, a sharp jump from the $4 billion withdrawn in January. The sell‑off focused on South Korea and Taiwan, where fears of high AI‑related spending have shaken confidence in fast‑growing tech names. In that week, Korea saw a $7. 5 billion net outflow compared with a modest $0. 4 billion inflow in January, while Taiwan lost $3. 4 billion after a month‑long gain of just $0. 3 billion. Analysts say the move signals investors looking to diversify when certain themes feel crowded.Not all markets followed this trend. India welcomed a $0. 9 billion net inflow, buoyed by a U. S. trade deal that slashed tariffs on Indian goods from 50 % to 18 %. The shift comes after a record $4 billion outflow in January, the highest in five months. Experts note that the trade agreement has eased geopolitical concerns and tilted the risk‑reward balance toward the upside. Smaller economies in Southeast Asia experienced modest gains: Thailand drew $0. 3 billion, Indonesia $0. 1 billion and the Philippines $0. 02 billion. Vietnam, however, saw a $0. 2 billion outflow. These movements highlight how global sentiment can ripple through diverse markets, even as some regions find relief in new policy developments. The overall picture shows a cautious approach to high‑growth tech stocks amid AI hype, while trade agreements and regional stability can still attract capital in specific markets.