PLAYING CATCH-UP: After missing out on the US rally during the Lunar New Year holiday, investors in Taiwan sent the local index soaring nearly 300 points yesterday
Taipei Times
Date: Feb 22, 2018
By: Crystal Hsu / Staff reporter
The TAIEX yesterday rallied 2.81 percent, or 293.35 points, to close at 10,714.44, as
People dressed as “gods of fortune” to bring good luck to investors on the first business day after the Lunar New Year holidays hold up banners with Chinese blessings written on them in Taipei yesterday. Photo: Fang Pin-chao, Taipei Times
investors rebuilt their positions to catch up with gains on Wall Street over the Lunar New Year holiday, traders said.
The Dow Jones industrial average picked up more than 700 points during the Lunar New Year break in Taiwan, despite a 254-point drop on Tuesday after disappointing earnings results from major US corporations, while pressure over interest rate hikes escalated.
“The rebound in the TAIEX might be sustainable as the global economy improves, although uncertainty over capital movements and a potential market correction remains,” Yuanta Securities Investment Consulting Co (元大投顧) senior manager Lee Cheng-yen (李政諺) said.
Yields on US 10-year bonds rose to 2.87 percent last week, driving fund managers to slash investment-grade corporate debts by US$2 billion and emerging market debts by US$2 billion, the worst capital flight in 60 and 64 weeks respectively, JPMorgan Asset Management Taiwan said. [FULL STORY]
