Taiwan Stocks Rebound Above 41000 Points as Foreign Investors Continue Net Selling
Supported by the National Stabilization Fund launching its 10th market support operation and the Financial Supervisory Commission introducing five major market rescue measures, Taiwan stocks staged a strong rebound today, surging as much as 2647 points intraday, and finally closing at 41661 points, up 1960 points, marking the second largest single-day closing gain in history, and successfully reclaiming the 41000-point mark. U.S. stocks rebounded from a deep selloff last Friday, with chip stocks leading gains and driving the three major indices higher, with only the Dow Jones Industrial Average continuing to fall, while investors continued to assess the AI outlook, also providing support for the Taiwan stock rebound.
Despite the sharp rise in the index, the three major institutional investors together posted net sales of 945.26億元, of which foreign investors sold another 900.56億元, withdrawing 7957.15億元 over 8 consecutive business days; investment trusts have posted net purchases of Taiwan stocks reaching 3804.8億元 for 20 consecutive trading days. Market funds did not明显 return to cover positions, with stocks and currency diverging, and the foreign exchange market still under pressure from foreign capital withdrawal.
Taiwan Dollar Closes at 32.882, Trading Value Hits Eighth Largest in History
The Taiwan dollar against the U.S. dollar continued to digest earlier buying today, with strong foreign capital outflows, twice challenging 33 during the session without success. Some exporters entered the market to sell foreign exchange at lower levels, with trading volume slightly insufficient, and the depreciation widened in the afternoon, touching a low of 32.957, down 1.89角. The central bank intervened at the last moment, with the currency finally closing at 32.882, sharply depreciating 1.14角, and total trading value surging to 45億元, the eighth largest in history, depreciating by more than 1角 again after rebounding only last Friday.
Strong Dollar Demand, Taiwan Dollar Weakest Among Asian Currencies
Market participants in the foreign exchange market said that with foreign investors selling Taiwan stocks for consecutive days, funds still face withdrawal pressure, and even though Taiwan stocks rebounded strongly, with heated dollar trading demand, the exchange rate is prone to depreciation and difficult to appreciate, not only returning above the 32.9 level but also approaching the 33 mark. Although the central bank and exporters jointly stabilized the exchange rate, closing near 32.8 at the end of the session, today's decline has erased last Friday's gains, and it remains to be seen whether foreign net selling will narrow.
According to central bank statistics, the dollar index rose slightly 0.08%, while the euro fell slightly 0.04%. Asian currencies were mixed, with the Korean won leading gains, rising sharply 0.43%, and the Singapore dollar edging up 0.06%; the Taiwan dollar depreciated the most, falling 0.35%, while the renminbi and yen depreciated slightly 0.05% and 0.01% respectively. On the other hand, the U.S. Bureau of Labor Statistics reported 165000 new nonfarm jobs in October, exceeding expectations, with the unemployment rate falling to 4.1%, and combined new jobs for August and September revised up by 84000, U.S. Treasury yields rose across the board, and markets increased bets on the Federal Reserve raising interest rates in December.