Taiwan stocks closed higher for two straight days, with the NT dollar exchange rate against the U.S. dollar also recovering, reversing losses to close at 32.865, up 1.7 cents, temporarily easing depreciation pressure at the 33 integer level. Taiwan stocks on 1110 extended gains, with the weighted index surging by nearly 1500 points at one point. Although the 43,000 mark was retaken and then lost, it closed at 42711.92 points, surging 1050.22 points. The three institutional investors sold a net 148.23 hundred million NT dollars combined, of which foreign investors sold 341.16 hundred million NT dollars, marking nine straight days of selling, with cumulative net sales of 8298.31 hundred million NT dollars.
Opening High and Moving Low; Exporters and Central Bank Jointly Defend the Currency
The NT dollar reflected international markets in the morning, opening above the 32.8 level, hitting a high of 32.794, up nearly 1 jiao. As foreign investors traded in both directions, and with prior large outward remittance volume, the rate fell back above 32.9 intraday. However, exporters continued to sell U.S. dollars on dips, supporting the rate, while the central bank intervened late in the session against foreign hot money, pulling the rate back to 32.865 in one move, with total trading volume narrowing slightly to 32.155 hundred million U.S. dollars.
Middle East Cools; U.S. Philadelphia Semiconductor Index Surges 6.85%
Signs of cooling in the Middle East eased safe-haven sentiment. U.S. President Trump signaled a lower likelihood of a new round of military strikes against Iran, and with room for progress in bilateral negotiations, international oil prices fell sharply, easing inflation pressure, and funds flowed back into chip stocks, pushing all four major U.S. stock indexes higher, especially the Philadelphia Semiconductor Index, which surged 643.68 points, up 6.85%. Meanwhile, U.S. Treasury yields fell and the dollar index slipped to near 101.6, spurring a broad rebound in Asian currencies. Taiwan stocks were boosted by U.S. stocks, along with the FSC short-selling restrictions and the effect of the National Stabilization Fund launching its 10th market stabilization operation.
Asian Currencies Rise Together; Focus Turns to U.S. October CPI
Banking sources analyzed that with light at the end of the tunnel for the Middle East situation, oil prices retreating, funds returning to equities, and the international dollar weakening, Asian currencies stopped falling and rebounded across the board. Although international markets moved the NT dollar, continued net selling by foreign investors still pressured the rate. The central bank's prior public statements boosted exporters' willingness to sell foreign exchange, and recent active stabilization has kept the rate from staying above the 32.9 level. With Taiwan stocks rebounding for two straight days and the scale of foreign net selling gradually shrinking, depreciation pressure on the NT dollar shows signs of easing. Attention remains on fund flows and the upcoming U.S. October Consumer Price Index, as the inflation trend will affect the Federal Reserve's view on interest rates. According to central bank statistics, the dollar index fell sharply by 0.41%, the euro rebounded 0.62%, the Korean won led gains with a surge of 1.06%, the Singapore dollar rose 0.26%, and the renminbi and NT dollar edged up 0.06% and 0.05% respectively, with only the yen depreciating 0.03%.