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.
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