ASIA STOCKS: Strong Inflows Monday on AI lead, Politics in Thailand Stabilize

Foreign equity flows in Asia for  February 9 were characterized by a strong "risk-on" sentiment in North Asia, driven by political clarity in Japan and a broader "AI super-cycle". Investors rotated heavily into North Asian tech, particularly Taiwan and South Korea, where names like TSMC, Samsung and SK Hynix have a strong foreign share registry.  Global investors increasingly prefer North Asian chipmakers (TW and SK) over broader regional bets, driving record inflows into Asian tech ETFs though this does increase volatility in flows also.  After the huge outflows to end last week, this week has started strongly with good inflows.  

Foreign portfolio flows in India continue to improve following the US trade deal with the last 5 trading days seeing strong inflows.  

Thailand saw its largest one day inflows YTD to kick off the week but the broader 5-day picture points to a more stable outcome with the completion of the election over the weekend, likely to add to that sentiment.  

Indonesia's flows are stabilizing as equity volatility subsides  following political and transparency concerns.