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.
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Taiwan climbed to its highest position in global export rankings in more than three decades last year, buoyed by demand linked to artificial intelligence (AI) that lifted shipments of semiconductors and technology products, Ministry of Finance data released yesterday showed. Taiwan accounted for 2.4 percent of global exports last year, or about US$640 billion, ranking 12th worldwide, the data showed. That was up four places from a year earlier and marked the nation’s best ranking since 1994, the ministry said. Taiwan’s share of global exports rose by 0.5 percentage points from the previous year, the largest increase among major economies, reflecting the nation’s
FIRST TRIAL: Ko’s lawyers sought reduced bail and other concessions, as did other defendants, but the bail judge denied their requests, citing the severity of the sentences Former Taipei mayor Ko Wen-je (柯文哲) was yesterday sentenced to 17 years in prison and had his civil rights suspended for six years over corruption, embezzlement and other charges. Taipei prosecutors in December last year asked the Taipei District Court for a combined 28-year, six-month sentence for the four cases against Ko, who founded the Taiwan People’s Party (TPP). The cases were linked to the Core Pacific City (京華城購物中心) redevelopment project and the mismanagement of political donations. Other defendants convicted on separate charges included Chinese Nationalist Party (KMT) Taipei City Councilor Angela Ying (應曉薇), who was handed a 15-year, six-month sentence; Core Pacific
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