Date: September 15, 2015
By: Justina Lee
The best refuge from the Asian emerging market crash triggered by China’s slowdown is right next door in Taiwan.
Global funds boosted holdings of the island’s equities this month, while pulling money from securities in South Korea, India, Indonesia and Thailand, exchange data show. The Taiex share index has gained 0.9 percent in U.S. dollar terms so far this month, the most in Asia, while benchmarks in Shanghai and Jakarta both slumped by about 6 percent. The Taiwan dollar, Japanese yen and Singapore dollar all gained in September as money exited higher-yielding markets.
Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley all have “overweight” recommendations on the island’s stocks as companies from Taiwan Semiconductor Manufacturing Co. to Pegatron Corp. benefit from strengthening U.S. demand for tech products. A current-account surplus running at 14 percent of gross domestic product is also providing support for the local currency as the U.S. Federal Reserve prepares to raise interest rates. [FULL STORY]