More Foreign Cash Coming Into Taiwan
Taiwan is topping other Asian countries when it comes to attracting foreign cash in Asia. A Bloomberg report says Taiwan has garnered the top spot in attracting foreign cash, helping to push the Taxiex index up to 17 percent. In fact, the country’s Taiwan Semiconductor Manufacturing Co., the biggest stock on the gauge, increased to a new record high this week.
The Bloomberg data shows foreign asset managers invested $2.9 billion into Taiwanese shares so far in March this year and more foreign cash is poised to be invested next month. This is the largest amount among eight Asian markets, based on the compiled Bloomberg data. Foreign asset managers invested $2.9 billion into Taiwanese shares.
In addition, Taipei, the capital of Taiwan, is targeted by foreign investors, thanks to the leadership of President-elect Tsai Ing-wen who is determined to focus on economic issues.
Amid Political Uncertainties, Foreign Investors Reallocate Cash To Taiwan
There is speculation that foreign investors are reluctant to put cash into the Asian country ahead of the elections. However, this was not the case. In fact, Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd., asserted that nothing has really gone wrong since the elections and contrastingly, investors are interested to reallocate funds into Taiwan.
Economic Boom Under President-elect Tsai Ing-wen?
There is renewed optimism that the country’s economy will boom under the new administration of President Tsai Ing-wen. This optimism is clearly seen in the Taiex chart when the index rose above the falling 200 day moving average in the last week of January.
The Bloomberg report says the new leader’s goal is to support growth in these five areas:
- green technology
- national defense
- smart machinery
- the Internet of Things.
The country’s Taiwan Semiconductor Manufacturing Co, (symbol TSMC), the world’s largest dedicated independent semiconductor foundry, played its part in the market’s move. In fact, TSMC increased by 1.9 percent today. Bloomberg says the stock’s surge comes as a result of increased global demand for chips used in smartphones and other gadgets and a pull-back in China.