Latest data today shows that the global capital allocation pattern has undergone significant restructuring since 2026. Capital has accelerated its outflow from the U.S. stock market, while Japan, Europe and Asian emerging markets have become the focus of capital pursuit. The pace of global asset rotation has accelerated significantly, bringing far-reaching impacts on the international financial market.

Signs of capital outflows from the U.S. stock market are particularly obvious. In the first two months of this year, the scale of capital outflows from U.S. stock-related products reached $52 billion, the highest level in the same period in more than a decade. Analysis points out that the core reasons for capital outflows include three aspects: first, the valuation of technology stocks is at a historical high, the upsurge in artificial intelligence has cooled down, and investors have questioned the profit realization capacity of high-valuation sectors; second, the intensification of differences in the Federal Reserve’s monetary policy has increased policy uncertainty and reduced market risk appetite; third, the volatility of U.S. tariff policies and fiscal policies has further reduced the attractiveness of the U.S. stock market.

In sharp contrast to the capital outflows from U.S. stocks, Asian emerging markets have become the focus of capital allocation. Data shows that global investors have invested nearly $26 billion in emerging markets since the beginning of this year, with South Korea being the biggest beneficiary. The Seoul Composite Index rose 0.65% on the day, its sixth consecutive trading day of gains. Continuous foreign capital inflows, coupled with the strong performance of technology giants such as Samsung and SK Hynix, drove the market higher. The Hang Seng Index rose 2.53% on the day, led by the technology and Internet sectors, mainly benefiting from the weakening U.S. dollar