The TAIEX yesterday closed up 0.17 percent at 17,370.56, outperforming Hong Kong’s Hang Seng Index for the first time in 30 years, as the local index continued to benefit from liquidity-driven rallies, analysts said.
The TAIEX bucked downturns in most Asian markets with a turnover of NT$321.715 billion (US$10.29 billion), as foreign portfolio managers raised their stakes in Taiwanese tech companies, especially firms involved in the global supply chain of artificial intelligence products, Taiwan Stock Exchange (TWSE) data showed.
By contrast, the Hang Seng Index shed 2.08 percent, or 360.7 points, to close at 16,993.44, its lowest in five weeks, after China’s top food-delivery platform operator Meituan (美團) plunged after warning about a slowdown in demand.
Photo: CNA
Despite Hong Kong’s reputation for having a sound banking system, virtually no public debt, a strong legal system and ample foreign exchange reserves, its status as a regional financial hub has taken a hit from capital outflows amid US-China trade disputes and a slowdown in private consumption, analysts said, adding that property market corrections are weighing heavily on the territory.
Hong Kong on Nov. 10 lowered its economic growth forecast for this year to 3.2 percent, from a range of 4 to 5 percent, a sign that tough times remain amid a muted post-COVID-19-pandemic recovery.
The downward revision came even though the territory’s economy grew 4.1 percent, faster than Taiwan’s 2.32 percent over the same period.
The Directorate-General of Budget, Accounting and Statistics on Tuesday trimmed Taiwan’s GDP growth forecast for this year from 1.61 percent to 1.42 percent, but expects growth to more than double to 3.35 percent next year.
Hong Kong’s government has for months tried to boost turnover and revive a torpid stock market, but to little avail.
Analysts have said that a reversal in fortunes would not be possible without a major improvement in China’s economic prospects.
The TAIEX, on the other hand, climbed to an eight-month high despite a lackluster economy this year, due mainly to its rising importance in the supply of chips and other electronics.
Foreign institutional investors yesterday increased holdings in local shares by a net NT$9.9 billion, offsetting a net sale of NT$787 million by proprietary traders, TWSE data showed.
Mutual funds bought up positions by a modest net NT$74 million, the data showed.
The steep rise in the local currency lent support to hot money inflows fueled by expectations that a technology product downcycle is coming to an end.
The New Taiwan dollar has gained 3.6 percent this month against the US dollar, the central bank said, after the US Federal Reserve left its policy rates unchanged in September and last month.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
US Indo-Pacific Commander Admiral Samuel Paparo on Friday expressed concern over the rate at which China is diversifying its military exercises, the Financial Times (FT) reported on Saturday. “The rates of change on the depth and breadth of their exercises is the one non-linear effect that I’ve seen in the last year that wakes me up at night or keeps me up at night,” Paparo was quoted by FT as saying while attending the annual Sedona Forum at the McCain Institute in Arizona. Paparo also expressed concern over the speed with which China was expanding its military. While the US
‘FALLACY’: Xi’s assertions that Taiwan was given to the PRC after WWII confused right and wrong, and were contrary to the facts, the Ministry of Foreign Affairs said The Ministry of Foreign Affairs yesterday called Chinese President Xi Jinping’s (習近平) claim that China historically has sovereignty over Taiwan “deceptive” and “contrary to the facts.” In an article published on Wednesday in the Russian state-run Rossiyskaya Gazeta, Xi said that this year not only marks 80 years since the end of World War II and the founding of the UN, but also “Taiwan’s restoration to China.” “A series of instruments with legal effect under international law, including the Cairo Declaration and the Potsdam Declaration have affirmed China’s sovereignty over Taiwan,” Xi wrote. “The historical and legal fact” of these documents, as well