Asian Stocks Win Back Foreign Buyers After Nine Months of Selling

Foreign investors came back to Asian stock markets in August, buying stocks after nine straight months of selling. They spent a net $4.72 billion on stocks in countries like Taiwan, South Korea, India, Indonesia, Thailand, Vietnam, and the Philippines. The big reason for this return was excitement about artificial intelligence, or AI, technology, along with strong company earnings reports.

Big tech companies like Amazon, Microsoft, and Nvidia gave optimistic outlooks for the future, which helped push Asian stock prices higher. A major index that tracks Asia-Pacific stocks rose about 3% in August after hitting a low point in July. Investors saw this as a sign that demand for tech products made in Asia was staying strong.

Asian companies also posted impressive profits. On average, their earnings beat expert predictions by about 10%. Overall profits grew nearly 45% compared to the same time last year, and technology companies grew even faster, posting profit growth of almost 88%.

Taiwan saw the biggest gains, with foreign investors buying $11.15 billion worth of its stocks in August. That ended two months of selling in Taiwan. India also did well, with investors buying $3.1 billion of Indian stocks for the second month in a row.

South Korea had a harder time. Foreign investors pulled money out of South Korean stocks for four months in a row, taking out $8.65 billion in August alone. However, things started to look better in September, with investors adding back $1.1 billion to South Korean stocks in just the first days of the new month.

Smaller markets had mixed results. Indonesia and Vietnam each saw small amounts of money flow in — $68 million and $11 million, respectively. Thailand and the Philippines, however, saw money flow out, losing $749 million and $216 million.

Experts say the return of investor interest is mostly about AI, not a general comeback for all of Asia. Song Zhe, a senior investment expert at BNP Paribas Asset Management, said that higher bond yields, rising oil prices, and world tensions could keep markets bumpy. He advised looking for companies with clear earnings growth and strong ties to AI technology.