Taiwan Stocks Give Back Gains, Only Investment Trusts Net Buy
Taiwan stocks, which rebounded sharply by 939 points yesterday, reversed lower today, at one point plunging 980 points intraday, giving back yesterday's gains, with losses narrowing into the close, ending down 667 points at 46368 points, down 1.42%, with turnover of 7904 hundred million yuan. Among the three major institutional investors, foreign investors net sold 688 hundred million yuan, dealers net sold 1.8 hundred million yuan, hedging positions net sold 213 hundred million yuan, with only investment trusts net buying 86 hundred million yuan.
Alphabet Earnings Disappoint, AI Spending Under Scrutiny
US technology stocks are in earnings season, with Google parent Alphabet reporting search advertising growth of 12% and negative free cash flow of 90.7 hundred million US dollars, both below analyst expectations, with the after-hours share price plunging 10.5%, becoming a concern for US stocks. Cathay Philadelphia Semiconductor 00830 manager Li Hanlin said the focus is on whether cloud revenue can sustain growth, as well as whether huge AI infrastructure spending can translate into revenue and cash flow; cloud operators' capital expenditure plans, computing demand and data center build-out progress are important clues for evaluating subsequent semiconductor orders and earnings. Since the beginning of this year, 00830 has more than doubled in both scale and number of beneficiaries, with assets growing 156.04% as of October 22 and beneficiaries increasing 135.27%, up by more than 11 ten thousand people. To lower the threshold, the split proposal will open electronic voting at 7 a.m. on the 30th, until 11:59 p.m. on November 16, with a beneficiary meeting to be held on November 19, expected to adopt a 1-for-5 or 1-for-6 split, with total value unchanged.
Inflation Heats Up, Employment Cools, Rate Hikes Near End
"Anue Fund" said that although rising energy prices have added inflation pressure, the US job market has cooled, with corporate hiring slowing without large-scale layoffs, the economy is resilient, and the need for the Federal Reserve to continue raising rates has declined. Investment research head Luo Yaoting pointed out that US September CPI rose to 3.7% year-on-year from 3.4% in August, with the energy price year-on-year rate rising 4.3 percentage points, widening gains in used cars, transportation services and rents, and core CPI rising 0.1 percentage points. September nonfarm payrolls added only 2.9 ten thousand people, far below 13.3 ten thousand in August and the 4.5 ten thousand average over the past 12 months, with the unemployment rate steady at 4.2%, showing low-hiring, low-layoff characteristics. If the economy lands softly, the S&P 500 averages cumulative gains of 23%, 57% and 93.1% in the one, two and three years after stopping rate hikes.
Korean Memory Sold Out, High-Dividend ETFs Surge
Dahua Korea KOSPI 50 manager Lai Yuting said SK Hynix earnings signaled DRAM and HBM capacity fully sold out through 2029, with the shortage extending to 2030. The ETF's core holdings are Samsung Electronics and SK Hynix, together accounting for two-thirds of weight, with South Korea KOSPI forecast ROE at 25.2%, better than the S&P 500's 23.9%. In addition, 25 Taiwan high-dividend ETFs averaged 57.57% including dividends so far this year, of which 8 beat the broader market, led by Capital Semiconductor Income 00927 up 94.95%. Managers Xie Mingzhi and Hong Xiangyi are respectively optimistic about AI spillover effects and medium- to long-term momentum in AI-concept stocks, with the short term still affected by US-Iran conflict, cloud earnings and the interest-rate meeting.