Similarly, Morgan Stanley's Asia-Pacific strategist Malcolm Wood expressed his optimism late last month, saying that "Our key overweight market is Taiwan ... one catalyst could be an earnings growth."
Taiwan has been a significant underperformer, impeded by concerns about ongoing local investor selling, a poor political outlook, a consumer credit crisis and a possible currency crisis, Wood said.
However, "We see local investor selling as manageable, the consumer credit problem as far smaller than the Korean experience, a poor political outlook as fully discounted and a low risk of a currency crisis," the analyst added.
Bullish as foreign investors are, potential risks may dog the market, including crude oil prices that would remain high on tight supply this year, the US property bubble that could jeopardize buying power and a potential bird flu pandemic, according to Jih Sun Securities Investment Trust Co (
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