Global stock markets are showing a clear divergence, and the contrast in these figures is striking.
🇮🇩 Indonesia: Fell 11.6% on Friday and another 3.6% on Monday, a record two-day drop. The original text linked the selloff to the threat of an MSCI downgrade.
🇹🇷 Turkey: The stock market fell 33% in a month.
🇰🇷 South Korea: The Kospi fell 14.5% last week, its worst weekly performance since 2008.
🇨🇳 China: The original text says the CSI 300 fell for 10 consecutive weeks, setting a record for its longest losing streak.
🇮🇳 India: The Nifty is down 14% year to date, while net foreign outflows have exceeded 3 trillion rupees.
🇪🇺 Europe: On Monday, the CAC 40 fell 1.1%, the DAX fell 1.2%, the FTSE 100 fell 1.1%, and Italy’s MIB fell 1.6%.
Meanwhile, the S&P 500 rose 0.4% and the Nasdaq gained 1.1%.
With several overseas markets under pressure while U.S. stocks move higher, it is easy to infer that money is flowing into U.S. tech stocks and AI. But index movements alone cannot prove where money is flowing, and the reasons for declines in different markets are not all the same.
What is truly worth noting is the widening divergence between global assets. If investors continue chasing growth expectations for U.S. tech stocks while steadily reducing their exposure to other markets, valuation gaps between markets could widen further.
Of course, these figures cover different time periods, so the performance of these indexes cannot be directly compared. Nor can a single set of figures alone establish that global capital is shifting wholesale toward the U.S. and AI.
When global markets no longer rise and fall together, judging where investors are willing to keep their money matters more than simply predicting whether the broader market will rise or fall.
🇮🇩 Indonesia: Fell 11.6% on Friday and another 3.6% on Monday, a record two-day drop. The original text linked the selloff to the threat of an MSCI downgrade.
🇹🇷 Turkey: The stock market fell 33% in a month.
🇰🇷 South Korea: The Kospi fell 14.5% last week, its worst weekly performance since 2008.
🇨🇳 China: The original text says the CSI 300 fell for 10 consecutive weeks, setting a record for its longest losing streak.
🇮🇳 India: The Nifty is down 14% year to date, while net foreign outflows have exceeded 3 trillion rupees.
🇪🇺 Europe: On Monday, the CAC 40 fell 1.1%, the DAX fell 1.2%, the FTSE 100 fell 1.1%, and Italy’s MIB fell 1.6%.
Meanwhile, the S&P 500 rose 0.4% and the Nasdaq gained 1.1%.
With several overseas markets under pressure while U.S. stocks move higher, it is easy to infer that money is flowing into U.S. tech stocks and AI. But index movements alone cannot prove where money is flowing, and the reasons for declines in different markets are not all the same.
What is truly worth noting is the widening divergence between global assets. If investors continue chasing growth expectations for U.S. tech stocks while steadily reducing their exposure to other markets, valuation gaps between markets could widen further.
Of course, these figures cover different time periods, so the performance of these indexes cannot be directly compared. Nor can a single set of figures alone establish that global capital is shifting wholesale toward the U.S. and AI.
When global markets no longer rise and fall together, judging where investors are willing to keep their money matters more than simply predicting whether the broader market will rise or fall.