Taiwan stocks rose yesterday to close at a new seven-year high, boosted by gains in property stocks.
The weighted index rose 56.28 points to the day's high of 8,939.49, off a low of 8,849.35 on turnover of NT$131.61 billion (US$4.01 billion).
Risers led decliners 727 to 554, with 184 stocks unchanged.
A total of 42 stocks closed limit-up. Nine were limit-down.
Alvin Teng (
"There were expectations of pressure around 9,000 points on the index [but] ... ample liquidity lent support ... evidenced by rotational interest," he said, noting the food and textile sectors in particular attracted laggard buying.
Property and construction firms gained ground on news that the Cabinet would discuss urban renewal plans.
The market was also supported by laggard interest in food and textiles, while financial stocks benefited from a report that Morgan Stanley was looking to buy a near 10 percent stake in Chinatrust Financial Holding.
"The government's plan on urban renewal projects boosted real estate stocks," Teng added.
Taiwan Semiconductor Manu-facturing Co (台積電) was down 0.10 at NT$70.80, while United Microelectronics Corp (聯電) finished steady at NT$19.85.
Chinatrust Financial Holding Co (
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
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