Global Funds Unwind Hottest AI Trades as Inflation Fears Mount

Foreigners are fleeing from Asia’s hottest markets this year, as exuberance in the artificial-intelligence trade gives way to fears about an oil-driven inflation shock.

Overseas investors sold about $3.1 billion of South Korean shares this week as of Tuesday after offloading a record $13.7 billion last month. In Taiwan, they dumped another $3.6 billion, putting the market on track for the biggest weekly outflow since late December.