Taiwanese shares yesterday closed sharply higher at a new record, lifted by optimism over progress in US-China trade talks and expectations of an interest rate cut by the US Federal Reserve this week.
Shares elsewhere in Asia also rallied, with Japan’s benchmark Nikkei 225 breaching 50,000 for the first time and South Korea’s KOSPI closing at a new high.
“Like other Asian markets, local investors were encouraged by the upbeat mood over US-China trade talks to raise their holdings today,” MasterLink Securities Corp (元富證券) analyst Tom Tang (湯忠謙) said.
Photo: CNA
“Buying focused on tech stocks, as many investors were hoping for a rate cut by the Fed after Washington reported cooler than expected inflation in September,” Tang said. “Lower interest rates will no doubt make tech stocks dividend yields more attractive.”
On Sunday, US and Chinese negotiators agreed on a framework for a trade deal ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping (習近平) in South Korea on Thursday, on the sidelines of the APEC summit — their first face-to-face encounter since Trump returned to office in January.
US Secretary of the Treasury Scott Bessent told CBS’ Face the Nation on Sunday that the threat of additional tariffs on China was “effectively off the table.”
In a series of US television interviews, Bessent said the discussions produced initial agreements for Beijing to curb exports of precursor chemicals used in fentanyl production and to make “substantial” purchases of soybeans and other agricultural products, while delaying new export controls on rare earths.
Chinese Vice Premier He Lifeng (何立峰) said the two sides reached a “preliminary consensus” on tariffs, export controls and fentanyl cooperation, describing the talks as “candid, in-depth and constructive.”
The breakthrough came after months of escalating tensions, with Trump threatening a massive tariff hike in response to China’s expansion of rare earth export controls early this month — a move Washington called “economic coercion.”
“Despite the framework agreed upon by US and Chinese negotiators, investors need to watch closely how the Trump-Xi meeting proceeds as uncertainties remain before a formal deal is cut,” Tang said.
The TAIEX rose 461.37 points, or 1.68 percent, to close at 27,993.63, retreating slightly from 28,000 after contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) pared early gains on profit-taking. TSMC closed up 2.07 percent at NT$1,480.
In Japan, opinion polls showed newly installed Prime Minister Sanae Takaichi had public support for her market-friendly policies and confident debut at the regional summit.
The Nikkei 225 gained 2.5 percent to finish at a record 50,512.32.
Seoul’s KOSPI also advanced more than 2 percent to break 4,000 for the first time, boosted by a 3 percent rise in Samsung Electronics Co and a nearly 5 percent jump in chipmaker SK Hynix Inc.
Hong Kong, Shanghai, Singapore and Sydney also made gains, while Jakarta and Manila fell.
Additional reporting by AP and AFP
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