(Bloomberg) -- Foreign investors are on track to pour record capital into Taiwan stocks in November, as expectations that the Federal Reserve is done with interest-rate hikes boost demand for technology shares.
The North Asian market has so far attracted $8.2 billion on a net basis, the largest monthly inflow since at least 2000, according to data compiled by Bloomberg. Taiwan also racked up the highest inflows among emerging Asia excluding China peers.
Taiwan’s benchmark TWSE Index has climbed 8.6% in November — among the best performers in Asia Pacific — tracking a global rally as investors eye a peak in borrowing costs and reassess tech valuations. Chipmaker heavyweight Taiwan Semiconductor Manufacturing Co. advanced nearly 8%, helped by the prospect of its artificial intelligence-linked business.
Taiwan is “very much geared toward the US cycle, essentially the AI-related cycle,” said Caroline Yu Maurer, head of China and specialized Asia strategies at HSBC Asset Management, at a briefing on Tuesday. Additionally, the leading stocks in Taiwan, “are not really extreme on valuations, they’re not as expensive,” she said.
South Korea, another tech-heavy market, attracted sizable inflows of $3.1 billion. Indian equities, which are increasingly turning into a structural bet for many foreigners, were relatively less popular and gathered $614 million, the data showed.
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