Asia's AI slump revives interest in India and China stocks

Investors are shifting away from AI-focused stocks in Asia following the Democrats' US election sweep, reviving interest in underperforming markets like China and India as they seek diversification and less demanding valuations. Aberdeen Investments favors India and Vietnam for domestic growth, while hedge funds are going long on Hong Kong futures and betting against oil firms. India's Nifty 50 gained 8.6% last week on foreign inflows, and China's mainland stock gauge rose 5.2%, as falling oil prices and easing trade tensions boost appeal. Beyond these markets, investors are eyeing Korean consumer stocks, healthcare, and firms like LG Electronics that could benefit from reduced tariff pressure. Some still see the AI selloff as a buying opportunity, but caution prevails as foreigners continue selling regional chip suppliers.