Updated
Updated · Bloomberg · Jul 26
Asia Stock Funds Cut AI Bets, Add Indonesian Banks and Chinese E-Commerce
Updated
Updated · Bloomberg · Jul 26

Asia Stock Funds Cut AI Bets, Add Indonesian Banks and Chinese E-Commerce

3 articles · Updated · Bloomberg · Jul 26

Summary

  • Fidelity International, BNP Paribas Asset Management, M&G Investments and Eastspring Investments are rotating into Indonesian banks, Chinese e-commerce names and Indian technology stocks as they pare AI-linked exposure.
  • The shift is aimed at cutting risk from increasingly volatile AI trades, with managers reducing holdings in Korean equities, semiconductors and, in M&G’s case, Taiwan.
  • That rotation favors laggards across Asia rather than the market’s recent AI leaders, signaling a broader search for diversification after sharp swings in semiconductor-heavy markets.

Insights

Could the sudden shift to safe Indian tech stocks backfire as AI-driven deflation secretly threatens their core business models?
Are investors making a massive mistake by abandoning AI for underperforming Chinese and Indian stocks right before the next tech boom?