Taiwan Stocks Soar 939 Points as Foreign Capital Flows Back
Boosted by strong performance in technology stocks, US stocks closed higher across the board, and Taiwan stocks today (28th) opened higher and moved higher, led by electronics heavyweights, with the weighted index surging 939.35 points to successfully reclaim the 47000 mark. The three institutional investors together net bought 298.95億元, including 159.22億元 from foreign investors and 118.07億元 from investment trusts, with returning hot money supporting both stocks and forex. On market news, Iran reportedly is considering a new draft agreement proposed by Qatar, and international crude oil prices slipped; details of Anthropic's upcoming initial public offering sparked discussion, easing investor concerns and driving a rebound in AI concept stocks, with US stocks turning higher across the board.
Morning Volatility Sees 32.3 Handle, Afternoon Holds Around 32.42
With funds returning, the Taiwan dollar against the US dollar fluctuated in a range in early trading, with importers and exporters pulling in opposite directions, rising as high as 32.398 in early trading to show a 32.3 handle. But on highs there were importers buying foreign exchange, and amid buying and selling tussles, the rate once fell back toward the 32.5 handle. Forex traders said foreign investors traded in both directions, and in the afternoon funds turned to inward remittances, becoming the biggest push for the rate, which consolidated around 32.42 and gradually stabilized, finally closing at 32.418, up 3.4 cents.
Central Bank Takes Willow Theory Approach While Awaiting FOMC Decision
Forex traders pointed out the central bank rarely stood on the sidelines, adopting the willow theory to allow the rate to swing moderately, with the Taiwan dollar finally posting a second straight gain and hitting a new high since Oct 19. However the market is quietly awaiting the Federal Open Market Committee decision, trading was slightly light, with total turnover at 2.488 billion US dollars. The market widely expects the US Federal Reserve to hold interest rate policy steady, pushing the US dollar index higher and back to the 102 level, and according to central bank statistics, the US dollar index rose 0.24%.
Asian Currencies Mixed, Short-Term Consolidation Seen at 32.3 to 32.5
Forex traders analyzed that the shift in foreign capital is clear, with stocks and forex both rising, only the Federal Reserve will announce its interest rate meeting result tomorrow, and trading volume in stock and forex markets has shrunk accordingly. In addition, entering month-end, exporters have foreign-exchange selling needs, with sellers emerging near 32.5, allowing the Taiwan dollar to temporarily leave its recent lows and consolidate in the 32.3 to 32.5 range in the short term. According to central bank statistics, the euro fell 0.34%, Asian currencies were mixed, the Taiwan dollar rose 0.10%, the yen and renminbi edged up 0.05% and 0.01% respectively, the Korean won plunged 0.89%, and the Singapore dollar edged down 0.04%.