Asian equities see record outflows on ME, AI worries

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Reuters June 11, 2026 Less than a minute read

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BENGALURU:

Asian equities are witnessing a surge in foreign outflows in June as escalating Middle East hostilities and a pullback in AI-linked technology stocks following underwhelming results by Broadcom prompt investors to trim exposure.

Foreign investors have withdrawn a net $27.08 billion from regional stocks so far this month, exceeding the combined net outflow of $24.08 billion in May, LSEG data covering exchanges in South Korea, Taiwan, Thailand, India, Indonesia, Vietnam and the Philippines showed.

The MSCI Asia Pacific Index hit a record 284.05 last week, but lower-than-anticipated second-quarter earnings from chipmaker Broadcom and Meta's fundraising plans pressured the hot technology sector. The index is down 4.34% so far this month. South Korea and Taiwan – regional AI-hardware and chip exporters – lead the outflows, with a net $12.63 billion and $8 billion of foreign sales so far this month. Foreigners sold $27.88 billion of South Korean stocks but bought $8 billion of Taiwan shares in May.