Tensions over North Korea triggered a sharp slump on the Tokyo Stock Exchange, causing the TAIEX to fall to the 9,789 point mark during early trading on the Taiwan Stock Exchange, only one point shy of the index’s previous low. Despite this, the index later stabilized above the 9,800 point mark off the back of strong performance from electronics stocks, while Taiwan’s two largest flat-panel suppliers posted gains.
The TAIEX closed down 14.74 points or 0.15 percent at 9,817.68 points with transactions during the trading session totaling NT$88.629 billion.
According to market analysts, factors include a minor correction on Wall Street and geopolitical threats from Syria and North Korea, as well as pressures like the imminent announcement by the US government on exchange rate manipulating countries. Investors also seem unable to dispel misgivings over exchange rate losses in first quarter financial reports, while the short-term outlook is poor, say analysts.
However, several groups of stocks managed to buck the trend: LCD panel makers AU Optronics Corp and Innolux Corp made strong gains, while in the optics/optronics sector, Genius Electronic Optical Co and Asia Optical Co continued to perform well.
This article was first published on April 12.
(CNA, translated by Edward Jones)
1. sharp slump n. phr. 重挫 (zhong4 cuo4)
2. stabilize v. 走穩 (zou2 wen3)
3. geopolitical threat n.
地緣政治風險 (di4 yuan2 zheng4 zhi4 feng1 xian3)
4. buck the trend v. phr. 突圍而出 (tu2 wei2 er2 chu1)