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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- We saw last year that the significant deceleration in the Chinese economic activity did not impact Taiwan equities, which led to a sharp divergence between the Hang Seng Index and the TWSE index.
- However, the surge in risk-off sentiment this year amid elevated geopolitical uncertainty and stagflation fears have been weighing on risky assets, particularly tech equities with US mega cap growth stocks down over 30% since their November highs.
- Due to its heavy semi-conductor component, Taiwanese equities have been trading like US-tech equities and therefore have historically been very sensitive to the liquidity dynamics and risk-off environments.
- The chart shows that the peak in US growth stocks in November 2021 was shortly followed by a peak in Taiwanese equities a few weeks later.
- TWSE is down over 15% since its all-time high reached in early January.
- ST support to watch on the downside stands at 15,102, followed by 14,763, which corresponds to the 38.2% Fibo retracement of the 8,523 – 18,620 range.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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