[Finance] US-Iran Peace Deal Expected to Boost Taiwan Stocks; Super Central Bank Week Adds Uncertainty
bella@@ 央廣 新聞1d ago
US President Trump announced that the US and Iran will officially sign a peace agreement on the 19th. Major Asian stock markets celebrated in unison today (15th). The Taiwan Stock Exchange closed up 1227 points, a gain of 2.78%, at 45,396 points, with trading volume shrinking to NT$1.06 trillion. Domestic institutional investors believe that with interest rate decisions from central banks of multiple countries, including Taiwan, this week, uncertainties are causing market funds to lean towards observation.
#Reported by Reporter Chen Lin-hsing-hung#
US President Trump announced on the 14th, US Eastern Time, that a ceasefire agreement had been reached between the US and Iran, and it would be signed in Switzerland on the 19th. This provided an impetus for major Asian stock markets opening on the 15th. South Korean and Japanese stock markets saw the most significant gains, both exceeding 5%. Although the Taiwan Stock Exchange's gains were not as strong as those in Japan and South Korea, it still rose by 2.78%, outperforming the Chinese stock market. The Taiwan Stock Exchange closed up 1227 points at 45,396 points. Three major institutional investors collectively bought NT$63.9 billion, with foreign investors buying NT$46.5 billion. In total, over NT$75 billion has been reinvested in Taiwan stocks over two trading days.
However, trading volume actually decreased. Compared to the average of nearly NT$1.3 trillion last week, the listed market turnover shrank to NT$1.06 trillion.
Domestic investment consultants pointed out that this week is a "super central bank week," with major central banks including Taiwan, the US, Japan, the UK, and Australia successively announcing their interest rate decisions. The market currently expects the US Federal Reserve (Fed) to largely remain unchanged, and the Bank of England (BOE) is also expected to make no adjustments. As for the Bank of Japan (BOJ), the market anticipates a 1-basis point rate hike to alleviate inflationary pressures from rising oil prices. If Japan raises interest rates, it also worries the market about triggering the unwinding of yen carry trades, potentially leading to a stock market crash.
Wang Rong-hsu, CEO of Wanbao Investment Consulting, said: "(Original sound) Funds borrowed at low-interest rates in yen for international stock market investments will be withdrawn, which could then trigger another wave of stock market sell-offs. However, this may not necessarily happen. For instance, the last time the Bank of Japan raised interest rates, the yen only rebounded slightly and not significantly, so the impact on the stock market was almost negligible. We don't know how it will react this time, because sometimes, whether it's data or information, it really depends on the market sentiment."
The US-Iran agreement spurred a significant rise in global stock markets. The Taiwan Stock Exchange has regained the 45,000-point level. With the return of foreign capital, the New Taiwan Dollar appreciated against the US Dollar, surging by over 1 jiao at one point to a low of 31.506. The central bank intervened in the late trading session, and the exchange rate closed up 5.4 cents at 31.564. (Editor: Hsu Chia-yuan)
Source Link: https://www.rti.org.tw/news?uid=3&pid=214641
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