Taiwan Stocks See $5 Billion Outflows as AI Hype Takes Breather

  • A rally in the Taiex index has cooled amid frothy valuations
  • Investors unwinding crowded trades in AI, Taiwan: Invesco
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Taiwanese stocks are set to see the largest monthly outflow in six months as concerns grow that the market’s artificial intelligence-driven rally has reached a short-term peak.

Overseas money managers withdrew $4.9 billion from local shares in April as of Monday close, Bloomberg-compiled data show. That would be the biggest net outflow since October last year. The benchmark Taiex Index has advanced less than 1% so far in April, compared to at least 6% gains in the previous two months.