Political turmoil doesn't stop market going higher
The China Post with CNATAIPEI, Taiwan -- Taiwan shares on Monday closed up 112.86 points despite local political turbulence, with the regulatory agency chief noting that political uncertainty will be short-term and that a second stock stimulus measure will be unveiled soon.
September 17, 2013, 12:08 am TWN
Boosted by Lawrence Summers' withdrawal from consideration to be the next Federal Reserve chairman, Taiwan share prices closed up 112.86 points, or 1.38 percent, at 8,255.34 Monday on turnover of NT$76.28 billion (US$2.58 billion).
Summers' back-out is expected to pave the way for Janet Yellen, who some investors say may favor a slower reduction in U.S. stimulus.
However, recent local political instability resulting from affairs surrounding Legislative Yuan Wang Jin-pyng (王金平) and President Ma Ying-jeou have cast doubt over Taiwan's share market.
Financial Supervisory Commission (FSC) Chairman Tseng Ming-chung (曾銘宗) yesterday sought to temper fears about the political crisis, noting that the issue will result only in short-term turbulence.
A three-pronged stimulus program aimed at spurring activity on Taiwan's bourses was unveiled Sept. 3 by the FSC.
He revealed yesterday that the “second arrow” will be launched on the first Monday after Mid-Autumn Festival.
The program gives brokerage firms more flexibility in their operations, increases market turnover and offers investors expanded hedging alternatives.