By: Tien Yu-pin and Frances Huang
Taipei, Aug. 20 (CNA) Uncertainty over Taiwan’s upcoming presidential election is affecting investor sentiment in the country as investors think the political situation is creating risks for the local economy, a survey on economic optimism in Taiwan showed Thursday.
Cathay Financial Holding Co. (國泰金), which conducted the survey earlier this month, said 35.2 percent investors think the January 2016 presidential election poses a threat to the domestic economy. Investors’ concern over the political uncertainty is greater than their worry about the debt problems in the eurozone (17.9 percent) and the pace of the economic recovery in emerging markets (17.2 percent), the poll indicated.
According to the survey, 16.5 percent of Taiwan investors fear that further volatility in China’s equity market will affect Taiwan’s economy, while 13.2 percent are apprehensive about a possible interest rate hike by the U.S. Federal Reserve later in the year. [FULL STORY]