Asian Stocks Pull Back After AI-Fueled Rally; Taiwan Central Bank Governor Says Outflows Are Manageable

Taiwan’s central bank said an AI investment boom had lifted global technology shares since late September 2025. Strong memory-chip demand drove South Korean stocks up 64.8%, while Taiwanese and Japanese equities gained 29.5% and 19.6%, respectively. Those elevated bases have left markets more vulnerable to geopolitical risks and shifting inflation expectations.

Addressing the legislature’s Finance Committee on March 30, 2026, central bank Governor Yang Chin-long said Taiwan’s benchmark stock index had risen from about 28,000 points at the end of 2025 to a high of 35,000 before recently returning to around 32,000, a move he described as a normal correction. Although conflict in the Middle East had prompted foreign investors to move funds out of Taiwan, the central bank did not disclose the amount and assessed the outflows as manageable for now.