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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
- Interestingly, Taiwanese equites were not heavily impacted by the rise in risk aversion last month with VIX surging to nearly 40.
- While US growth stocks (FANGs) plummeted by 20% from peak to trough (and were down by 25% from their October high) before edging higher in recent days, TWSE is down by ‘only’ 5% from its all-time-high reached on January 5th.
- Due to its heavy semi-conductor component, Taiwanese equities have been trading like US-tech equities and therefore has been strongly supported by the surge in global liquidity since the Covid19 shock.
- The chart below shows the strong co-movement between TWSE index and FANG+ index in recent years.
- Hence, further upside consolidation in US growth stocks could support Taiwan equities in the coming days.
- Key resistance to watch on the TWSE index stands at 18, 616.60, which corresponds to the all-time high.
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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