Asian equities saw significant foreign selling in early November as investors took profits amid concerns over stretched tech valuations and the durability of the recent market rally. 

Across Taiwan, South Korea, India, Thailand, Indonesia, Vietnam, and the Philippines, foreign investors pulled a combined $10.18 billion for the week ending November 7, reversing October’s net inflows. 

South Korea and Taiwan were hit hardest, with outflows of $5.05 billion and $3.86 billion respectively, largely driven by weakness in major AI-related companies. Regional tech indices reflected this pressure, as MSCI’s Asia ex-Japan IT sector fell over 4% after massive multi-month gains. Elsewhere in the region, India saw $1.42 billion in outflows, while Indonesia and the Philippines bucked the trend with moderate inflows.

Finsum: Despite volatility, some strategists argue valuations remain justified, citing strong expected global tech earnings growth.