Taiwan Stock Market Sees Decline Despite Global Optimism

Taiwan's stock market has faced a decline of over 2.2% over four sessions, closing at 21,336.54. Bargain hunting is expected as global market conditions improve, driven by easing tariff concerns.

Date: 28-05-2025

AI Rating: 5

Market Overview: The recent report indicates that the Taiwan stock market has been in a downward trend, losing more than 460 points or 2.2% over four consecutive sessions. Despite the negative performance, there seems to be an expectation of bargain hunting in the near term as the global market sentiment improves, particularly due to easing trade tensions.

Impact of Global Market Sentiment: The rebound in U.S. markets, especially the S&P 500 and NASDAQ, indicates investor optimism and could provide a beneficial spillover effect for Taiwan's market. The announcement of delaying tariffs on imports from the European Union by U.S. President Trump has also boosted sentiment, suggesting that market dynamics are becoming more favorable.

Sector Performance: Financial and technology sectors in Taiwan experienced declines, with significant drops in major companies like Cathay Financial, Mega Financial, and Taiwan Semiconductor Manufacturing Company. Such negative performance in high-value sectors may lower investor confidence unless there are recovery signals in the coming days.

Future Prospects: Taiwan is expected to release Q1 GDP data which is forecasted to show a significant improvement, projected at 5.37% year-over-year, up from 2.90%. A positive GDP report could instill confidence among investors and possibly trigger a reversal in the stock market's recent downtrend.

In summary, while the immediate outlook appears subdued due to recent losses, the potential for recovery depends significantly on upcoming economic data and the overall global market direction.

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