Asian Fund Managers Rotate Out of AI Stocks Into Laggards in July to Avoid Volatility

According to Fidelity International, BNP Paribas Asset Management, M&G Investments and Eastspring Investments, major Asian fund managers are reducing exposure to volatile artificial intelligence and semiconductor stocks this month, redirecting capital into underperforming assets including Indonesian banks, Chinese e-commerce companies and Indian technology stocks. The rotation has driven Southeast Asian equities to their best single-month performance relative to broader Asia in 24 years, with Indonesia becoming one of the world's top-performing markets in July. India has also emerged as the region's largest recipient of foreign capital inflows this month.
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