Investment flows are pivoting away from high-flying artificial intelligence names toward Indonesia’s battered equity market, signaling a broadening rotation in Asian equities.
As the AI-driven rally that has dominated global markets for months shows clear signs of fatigue, large institutional investors are increasingly selling tech-heavy positions and redeploying capital into laggard markets perceived as offering better value.
Indonesia, long considered an unloved corner of the emerging-market complex, is benefiting from this shift in sentiment.
The market has been battered by broader risk-off flows and geopolitical uncertainty, but the cooling of the AI trade is providing a fresh bid for its undervalued shares.
This rotation reflects a growing caution among traders who are looking to lock in profits from the tech sector while diversifying into regions with lower valuations and less exposure to the current volatility surge.
The move comes as the broader Asian equity rally, which was largely fueled by AI gains, lost momentum mid-week.