Taiwanese this month grew more confident about stock investments and the economic outlook, a survey by Cathay Financial Holding Co (國泰金控) showed yesterday, as major economic gauges pick up and the local bourse has risen to new highs.
The survey, in which Cathay Financial Holding polled 15,821 clients via e-mail between June 1 and 7, showed that 38.2 percent of respondents expect Taiwan’s economy to improve in the next six months, while 28.1 percent said that it would hold steady, 28.9 percent said the situation would deteriorate and 4.8 percent said they did not know.
The data showed a modest gain in optimism after the Directorate-General of Budget, Accounting and Statistics last month upgraded its forecast for GDP growth this year to 3.94 percent from 3.43 percent.
Photo: CNA
Furthermore, the government’s business climate monitor last month flashed “yellow-red,” indicating that the economy is heating up, potentially headed toward a boom propelled by global demand for artificial intelligence (AI) equipment.
Taiwan is home to the world’s major suppliers of advanced chips, high-end servers, storage and memory devices used in AI infrastructure and solutions.
That has helped drive the TAIEX higher and record-setting share prices for Taiwanese companies in the AI supply chain.
Shares of Taiwan Semiconductor Manufacturing Co (台積電) — which has customers including Nvidia Corp, Advanced Micro Devices Inc and Apple Inc — had risen 65.43 percent this year as of yesterday.
The survey showed that 47.3 percent of respondents expected the TAIEX to climb higher, while 22.8 percent expected corrections in the near term and 17.6 percent held a neutral view.
The index had risen 31.1 percent so far this year as of yesterday, when it closed at 23,406.10 points.
Twenty-seven percent attributed the TAIEX climbing to global financial markets and major central banks’ monetary policy, while 25.6 percent said it was to do with Taiwan’s economy and corporate earnings, 24 percent said it was due to Wall Street movements, 17.1 percent believed cross-strait ties were the dominant factor and 1.4 percent said it was China’s stock markets, the survey showed.
Against that backdrop, 37.3 percent expressed willingness to channel cash to stock investment, while 14 percent said they would cut positions, indicating a steep rise in risk appetite, it showed, although 48.7 percent said that they would maintain their level of investment.
The survey showed that 34.3 percent would increase consumption of big-ticket items, 19.8 percent would tighten their budgets and 45.9 percent would maintain their spending levels.
However, there was no sentiment pickup in job hunting, it showed, with 21.7 percent expecting employment to be easier to acquire in the next six months compared with 43.2 percent holding a neutral view and 27.4 percent who said it would become more difficult.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS