Taiwan's key stock index had its biggest gain in seven months after a second opposition politician headed for China, the nation's biggest trading partner, in an attempt to mend ties.
Hon Hai Precision Industry Co (
The bottom for relations between China and Taiwan "may have passed and the ground has been laid for improved communication," Dickson Ho (何資文), head of research at Morgan Stanley in Taipei, wrote in a note dated yesterday. "We expect the market to react favorably to any positive developments on the political front."
The TAIEX jumped 123.82, or 2.1 percent, to 5,927.50, its biggest gain since Oct. 4.
More than five stocks advanced for every one that declined.
Futures due this month added 1.7 percent to 5,902.
Hon Hai Precision, the nation's largest electronics company by sales and which counts China as a manufacturing base, rose 2.5 percent to NT$144.50. Quanta Computer Inc (
EVA Airways, the nation's second-biggest airline, added 1.3 percent to NT$15.20. China Airlines (
"Tensions will soon be a thing of the past," said Phil Chen, who helps manage the equivalent of US$1.9 billion at Grand Cathay Securities Investment Trust Co (
Morgan Stanley Capital International Inc announced last June it will raise the weighting of Taiwan's stocks in global indexes to 100 percent from 75 percent on May 31. Investors may buy about US$4 billion of the nation's equities to track the benchmarks, analysts and investors said at the time.
"The timing is perfect for Taiwan stocks. We are seeing investors in Asian markets shifting investment to the island ahead of the MSCI index rebalance this month," said Jerry Chen, a fund manager at Taipei-based First Global Investment Trust Co (元大投信).
Overseas institutional investors bought a net NT$10.64 billion worth of shares on Thursday.
Taichung reported the steepest fall in completed home prices among the six special municipalities in the first quarter of this year, data compiled by Taiwan Realty Co (台灣房屋) showed yesterday. From January through last month, the average transaction price for completed homes in Taichung fell 8 percent from a year earlier to NT$299,000 (US$9,483) per ping (3.3m²), said Taiwan Realty, which compiled the data based on the government’s price registration platform. The decline could be attributed to many home buyers choosing relatively affordable used homes to live in themselves, instead of newly built homes in the city’s prime property market, Taiwan Realty
The government yesterday approved applications by Alphabet Inc’s Google to invest NT$27.08 billion (US$859.98 million) in Taiwan, the Ministry of Economic Affairs said in a statement. The Department of Investment Review approved two investments proposed by Google, with much of the funds to be used for data processing and electronic information supply services, as well as inventory procurement businesses in the semiconductor field, the ministry said. It marks the second consecutive year that Google has applied to increase its investment in Taiwan. Google plans to infuse NT$25.34 billion into Charter Investments Ltd (特許投資顧問) through its Singapore-based subsidiary Fructan Holdings Singapore Pte Ltd, and
Micron Technology Inc is a driving force pushing the US Congress to pass legislation that would put new export restrictions on equipment its Chinese competitors use to make their chips, according to people familiar with the matter. A US House of Representatives panel yesterday was to vote on the “MATCH Act,” a bill designed to close gaps in restrictions on chipmaking equipment. It would also pressure foreign companies that sell equipment to Chinese chipmaking facilities to align with export curbs on US companies like Lam Research Corp and Applied Materials Inc. The bill targets facilities operated by China’s ChangXin Memory Technologies Inc
Singapore-based ride-hailing and delivery giant Grab Holdings’ planned acquisition of Foodpanda’s Taiwan operations has yet to enter the formal review stage, as regulators await supplementary documents, the Fair Trade Commission (FTC) said yesterday. Acting FTC Chairman Chen Chih-min (陳志民) told the legislature’s Economics Committee that although Grab submitted its application on March 27, the case has not been officially accepted because required materials remain incomplete. Once the filing is finalized, the FTC would launch a formal probe into the deal, focusing on issues such as cross-shareholding and potential restrictions on market competition, Chen told lawmakers. Grab last month announced that it would acquire
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