« Editorial: Gold Stock Fundamentals | Home | Jim Rogers on Bloomberg »
Taiwan’s Taiex is up 50% from bottom
Taiwan was our top country pick for 2009 and for beyond. I wouldn’t buy it here but long-term there is no other market that offers the kind of risk-reward that Taiwan does.
China Makes First Taiwan Investment as Relations Thaw
Taiwan’s benchmark Taiex index surged 5.7 percent, the biggest gain since Oct. 30, today on speculation more Chinese companies will invest on the island. The NT$17.8 billion ($529 million) purchase, announced by China Mobile yesterday, underscores how warming political relations between the two sides are leading to closer economic ties.
“This is a landmark deal. China Mobile will lead the way for other Chinese companies that have been waiting to invest in Taiwan but were hesitating,” said C.Y. Huang, vice chairman of Polaris Securities in Taipei. “This will open the floodgates for more Chinese investments into Taiwan.”
The Chinese government said this week it would end a ban on investments in the island on May 1 following an agreement to open cross-border operations for financial-services companies, expand direct flights and cooperate in fighting crime.
Taiwan Stocks Rise Most Since 1991 on China, Currency Rallies
Taiwan’s Taiex index, the world’s third-best performer this year, climbed 363.27, or 6.5 percent, to 5,977.33 as of 9:45 a.m. local time, headed for the biggest gain since August 1991. Stocks in the island are subject to a 7 percent daily trading limit. Only three of the 602 stocks on the index fell, with all 28 industry groups advancing.
Taiwan’s dollar rose 1.2 percent to NT$33.27 against the greenback, the biggest gain since Oct. 30, according to Taipei Forex Inc. The currency is heading for a appreciation of 1.9 percent this month, following an advance of 3 percent last month.
Civil War
Ties between Taiwan and China have improved since President Ma Ying-jeou took office in May and dropped the pro-independence stance of his predecessor, Chen Shui-bian. The island has enjoyed self-rule since Chiang Kai-shek’s Nationalists fled the mainland in 1949 after losing to Mao Zedong’s Communists in a civil war.
The Chinese government said this week it would end a ban on investments in the island on May 1 following an agreement to open cross-border operations for financial-services companies and more than double weekly direct flights to 270 from 108. Taiwan’s tourism bureau estimates 87,000 Chinese visited from the mainland in March compared with 42,000 in February.
You can enter in “EWT” below to see what Market Club’s system concludes
Comments are closed.