President Ma Ying-jeou (馬英九) yesterday ordered the Cabinet to prepare to protect the Taiwan Stock Exchange from the fallout from roiling global markets, after the TAIEX fell to its worst-ever intra-day drop, burdened by falling Chinese equities and the nation’s stagnant economy.
Ma gave the instructions during the regular weekly meeting of the Cabinet and Chinese Nationalist Party (KMT) at the Presidential Office Building, Presidential Office spokesman Charles Chen (陳以信) said.
The TAIEX plummeted a record 583.5 points — or 7.49 percent — to 7,203 at about 10:24am, before regaining some ground to end the trading day down 376.58 points, or 4.84 percent, at 7,410.34 on turnover of NT$144.886 billion (US$4.4 billion).
Premier Mao Chi-kuo (毛治國) had his aides convene a meeting of the National Stabilization Fund Committee to discuss whether to use the fund to bolster the local market amid the global turmoil, Executive Yuan spokesperson Sun Lih-chyun (孫立群) told reporters.
If the committee decides to allow the fund to be used to prevent a further decline in the TAIEX, the Cabinet would issue a statement to that effect, Sun said.
Mao has instructed Vice Premier Simon Chang (張善政) to closely monitor the situation and the measures that the relevant ministries are taking to address the stock market’s volatility, Sun said.
His instructions came one day after the government banned short-selling below the previous session’s closing prices and urged banks to buy back their stocks in a bid to stabilize the market.
Meanwhile, Legislative Speaker Wang Jin-pyng (王金平) said that the Legislative Yuan could convene its new session ahead of schedule to provide some alternatives for the government to stabilize the stock situation.
If such measures call for the amendment of laws, the legislature would be ready to act, Wang said.
The Legislative Yuan is scheduled to start its next session on Sept. 15.
The KMT is “willing to support an early start to the legislative session if the measure would help stabilize the stock market,” KMT Central Policy Committee executive director Lai Shyh-bao (賴士葆) said.
Democratic Progressive Party caucus whip Tsai Chi-chang (蔡其昌) said both parties would have to meet and discuss the viability of such a move.
It is not as if the local market would rebound simply because the Legislative Yuan is to begin its session early, Tsai said.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old