The TAIEX index climbed to a 16-week high after gains by the Chinese Nationalist Party (KMT) in Saturday's local government elections boosted hopes of better relations with China. Taiwan Semiconductor Manufacturing Co (TSMC,
"The setback for the pro-independence ruling party should reduce worries over independence and ease political risks," said Victor Shih, who helps manage the equivalent of US$2.4 billion at HSBC Asset Management Taiwan in Taipei.
"The government may also adopt a more open policy toward China." he said.
The TAIEX rose 119.36, or 1.9 percent, to 6,348.31 at the 1:30pm close in Taipei, the highest since Aug. 12. Yesterday's gain was the biggest since a 2.1 percent advance on Nov. 9. About eight stocks gained for each that fell. Futures due this month climbed 2.3 percent to 6,363.
The outcome of the election, in which the KMT won a majority of local government seats, was a setback for President Chen Shui-bian (陳水扁) and is seen as a barometer for the 2008 presidential campaign, analysts said.
Recent polls predicted a poor performance for the governing Democratic Progressive Party (DPP).
TSMC, the world's largest supplier of made-to-order chips, gained NT$1.40, or 2.3 percent, to NT$62.
Compal Electronics (仁寶電腦), the world's second-largest notebook computer maker, added NT$1.05, or 3.5 percent, to NT$30.70. Acer Inc, the nation's third-largest computer company by market value, advanced NT$2.80, or 3.8 percent, to NT$76.80.
All three companies have plants in China.
The election "is a strong message to the government that people are not satisfied with its performance," said Andrew Yang (
"President Chen should try to be more conciliatory with the opposition to deliver more effective, better linkages with China," he said.
Boosted by the election result, the New Taiwan dollar also rose yesterday, adding to its two-week gain on optimism a new government will end the troubled relationship with China and deal with allegations of corruption.
"The election result is what overseas investors were hoping for and the fund inflows will help the Taiwan dollar," said Gary Huang, a currency trader at Union Bank of Taiwan (
The NT dollar rose 0.1 percent to close at NT$33.493 against its US counterpart on turnover of US$798 million yesterday, according to Taipei Forex Inc. The currency may climb to NT$33.40 this week, Huang said.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last