With US stimulus to stay in place, Taiwan shares eye strong Q4
By Kathryn Chiu, The China PostTAIPEI, Taiwan -- Although Taiwan's share market was closed for vacation on Thursday, it is expected to come back in a big way after the U.S. Federal Reserve decided to hold steady on its bond-buying scale.
September 20, 2013, 12:21 am TWN
Asian stocks rose after the Fed surprised global markets by keeping its bond-buying scale yesterday.
In trading yesterday, the MSCI Asia Pacific Index in Hong Kong climbed 2.2 percent to 141.83, its highest close since May 22 and biggest daily advance since Sept. 7, 2012. All 10 industry groups on the gauge increased. Markets in mainland China, South Korea, Taiwan and Sri Lanka were closed for holidays.
Andy Wu (吳火生), chairman of Taishin Securities Investment Advisory Co. (台新投顧), yesterday told the Untied Evening News that he expects the benchmark TAIEX to dip in next Monday's trading.
Wu said the other shoe dropped after the Fed announced in its latest policy review that it will resume the current bond-buying scale, and it might result in profit-taking reactions from foreign investors in Taiwan's share market on Monday.
The withdrawal of Larry Summers from the race for U.S. Federal Reserve chairman had been interpreted as meaning that the quantitative easing policy (QE) of incumbent Fed Chairman Ben Bernanke will continue until mid-2014, Wu also said.
A mutual fund manager from Yuanta Securities Investment Trust Co. (元大寶來投信) said that the delay of QE tapering will help propel TAIEX to challenge this year's record level in the fourth quarter. Barclays Capital Taiwan gave an upbeat fourth-quarter outlook on Taiwan share market and expected TAIEX to hit 9500 points by the end of 2013.