Taiwanese stocks should benefit from a recovering economy even though avian flu has undermined the stock markets in many Asian countries, according to an analysis by an investment company.
The TAIEX has fallen 3.3 percent over the past few weeks, a report from HSBC Asset Management (Taiwan) Ltd said.
As well as being spared from the deadly H5N1 strain of avian flu, Taiwan has reported a string of strong economic data, the report said. The unemployment fell to 4.58 percent in December last year and economic indicators registered a yellow-red light, indicating a booming economy according to the government's five-color economic gauge.
Amid a rebounding domestic economy, the middle- and long-term prospects for the stock market are positive, the report said, advising investors to be cautiously optimistic about its development.
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