Taiwan Stocks Plunge in October as Foreign Investor Net Selling Hits Record High
U.S. tech giants reported weaker-than-expected earnings, sparking market concerns about the ability to monetize artificial intelligence investments, with selling pressure on tech stocks widening. October 30 was the last trading day of October for Taiwan stocks, which plunged 1156.5 points, down 2.49%, to close at 45211.83 points, with trading volume of 8777.7億元, falling below the half-year moving average at 45314 points. Foreign investors net sold 1124.67億元 in Taiwan stocks in a single day, the 7th largest net sell on record. For October as a whole, Taiwan stocks fell 2728 points, down more than 5.6%, with foreign investors net selling nearly 兆元 in Taiwan stocks, setting a record for the highest single-month net sell.
New Taiwan Dollar Falls 6.26 Jiao in Single Month With Monthly Line Down Two Straight Months
As foreign investors heavily sold Taiwan stocks and remitted funds abroad, the New Taiwan dollar against the U.S. dollar also faced depreciation pressure on the last trading day of October. During the session, amid continued outward remittances by foreign investors, it once depreciated sharply by more than 1.8 jiao, falling to 32.676. With substantial selling of foreign exchange by exporters at month-end, coupled with central bank adjustments, the New Taiwan dollar rebounded late in the session and closed slightly higher at 32.478. The weekly line ended four consecutive weeks of decline, rising 3 fen for the week, up 0.09%. For October overall, the New Taiwan dollar depreciated all the way from 31.852 on September 30 to 32.478, a sharp monthly depreciation of 6.26 jiao, down 1.96% for the month, with the monthly line down for two consecutive months.
Market Focus Shifts to Link Between Foreign Investors and Taiwan Stocks
Looking ahead, as month-end exporter foreign-exchange selling support fades, the foreign exchange market will return to being driven by capital flows. Banks noted that the New Taiwan dollar is still dominated by foreign investor inflows and outflows, with Taiwan stock trends affecting foreign investor moves, and the central bank's stance also key. The market will continue to watch whether Taiwan stock performance stabilizes and whether foreign investors continue their outward remittance pattern, which will affect the direction of the New Taiwan dollar.
U.S. Dollar Holds Steady as Federal Reserve Keeps Rates Unchanged
The U.S. dollar maintained a steady pattern, even as the dollar index fell below 102, remaining around 101.96. The U.S. Federal Reserve this week kept interest rates unchanged as widely expected by the market, while suggesting that upcoming inflation data will influence the future policy path, leaving investors uncertain about the interest rate outlook. The market currently expects a 78% chance of a rate hike in December. Investment always involves risks; investments may result in gains or losses. Investors should read the prospectus carefully before subscribing and establish correct investment concepts to reduce the risk of losses.