The TAIEX yesterday staged a strong comeback, rising 2.81 percent, or 250.58 points, to close at 9,152.88, led by local firms in Apple Inc’s supply chain as the iPhone 7 is turning out to be more successful and popular than expected, analysts said.
The rally came despite a correction on Wall Street over the four-day Mid-Autumn Festival holiday and policy uncertainty ahead of meetings of the central banks of the US and Japan.
“The rebound was much stronger than expected because of pre-orders for Apple’s iPhone 7 blowing away expectations at US telecom providers,” Masterlink Securities Investment Advisory Corp (元富投顧) president Liu Kun-hsi (劉坤錫) said by telephone.
Turnover rose to NT$96.98 billion (US$3.08 billion), a 15.14 percent increase from Wednesday last week, the last day before the market closed for the holiday, Taiwan Stock Exchange data showed.
Apple might sell as many as 100 million iPhone 7s by the end of the year, thanks to robust initial sales, which might be benefiting from rival Samsung Electronics Co’s recall of its Galaxy Note 7, foreign technology analysts forecast.
The exciting twists led institutional players to increase positions in local shares by a net NT$11.27 billion, while mutual funds added net holdings of NT$178 million, but proprietary traders trimmed holdings by NT$57.31 million, according to bourse tallies.
Foreign fund inflows elevated the New Taiwan dollar 0.76 percent to close at NT$31.450 against the greenback in Taipei trading, outpacing a 0.06 percent increase in both the Chinese yuan and South Korean won, the central bank said in a statement.
Currency transactions totaled US$1.045 billion on the Taipei Exchange, a significant increase from US$705 million on Wednesday on the back of better iPhone 7 sales, a trader at a local bank said.
Taiwanese firms supply chips, batteries, camera lenses, casings and other components for the iPhone 7, explaining a 4.29 percent rise in electronics firms, while semiconductor players advanced 4.11 percent and computer and peripheral makers rose 3.51 percent, the Taiwan Stock Exchange said.
The TAIEX might consolidate for the rest of the week until the US Federal Reserve and the Bank of Japan announce their latest monetary policies, Liu said.
“Chances are the Fed will keep interest rates unchanged this month and save rate hikes for its meeting in December to better support economic growth,” Liu said, adding that the scenario would drive more foreign funds to emerging markets, including Taiwan.
However, the currency trader voiced caution, saying foreign exchange markets could turn around any time investors see fit.
The local currency might trade between NT$31.2 and NT$31.8 versus the US dollar in the near future, as the central bank will not tolerate excessive volatility, Liu said.
The central bank is due to review its policy rates later this month.
At the start of their first-ever virtual World Health Assembly (WHA), WHO member states agreed to delay a controversial discussion on granting Taiwan observer status until later in the year. The agreement came after WHO Director-General Tedros Adhanom Ghebreyesus pledged to launch an independent probe to review the coronavirus pandemic response as soon as possible, and Chinese President Xi Jinping (習近平) announced that China would provide US$2 billion over two years to fight the coronavirus pandemic and its economic fallout. Despite the US and other members stepping up pressure in recent days, the WHA unanimously agreed to postpone a decision on observer
Another automatic 30-day visa extension for foreigners who entered Taiwan on or before March 21 this year has been granted, Minister of Foreign Affairs Joseph Wu (吳釗燮) announced yesterday during the Central Epidemic Command Center’s (CECC) daily news briefing. The Ministry of Foreign Affairs had granted an initial automatic 30-day visa extension on March 21 for foreigners who entered Taiwan on or before that date with a visa waiver, visitor’s visa or landing visa — and another on April 17, as part of tightened border control measures to contain the COVID-19 pandemic. Many foreigners who arrived in Taiwan on holidays or for
PROTEST SENT: Despite a wave of international support Taiwan did not receive an invite, which means that it and all WHO members would lose out, the two ministers said Taiwan deeply regrets and is very dissatisfied that it was not invited to attend the annual World Health Assembly (WHA), which began a virtual meeting yesterday, Minister of Health and Welfare Chen Shih-chung (陳時中) and Minister of Foreign Affairs Joseph Wu (吳釗燮) said. During the Central Epidemic Command Center’s daily news conference, Chen, who heads the center, said that as of 2pm, Taiwan had not received an invitation to the meeting, which was to begin at 6pm Taiwan time. “We put in our efforts [to get invited] up until the last moment, but it seems that we are unlikely to be invited,
US lawmakers and officials are crafting proposals to push US companies to move operations or key suppliers out of China that include tax breaks, new rules and carefully structured subsidies. Interviews with a dozen current and former government officials, industry executives and members of Congress show widespread discussions underway — including the idea of a “reshoring fund” originally stocked with US$25 billion — to encourage US companies to drastically revamp their relationship with China. US President Donald Trump has long pledged to bring manufacturing back from overseas, but the spread of COVID-19 and related concerns about US medical and food supply chains