Shares in Taiwan have ended at their highest levels of 2009. This could signal the start of a turnaround for the growing economy, along with its exchange traded funds (ETFs).
Relations between Asian exporters and Western consumers are shifting because of the global recession. According to Taiwan News, share prices closed up 1.66% on Monday to hit the highest level this year, led by large-cap electronic stocks after flat-panel monitor maker Innolux Display announced a major acquisition, dealers said. (See what other Asian economies are recovering).
The market opened up 0.47 % and buying accelerated to boost flat panel makers amid optimism triggered by the acquisition, while interest also spread to select old-economy stocks as they were market laggards. So-called economic “normalization” has been a bright spot in the country over the past 10 months, reports Merritt T. Cooke for Brookings.
As Taiwan’s economy is dependent upon exports, it is easy to see why the market meltdown of 2008-2009 has posted a challenge to the economy’s well-being. A rebound in the technology and information technology sectors may be the ticket for the Taiwanese economy to gain footing. (Why Taiwan’s economy should keep moving in the right direction).
For more stories about Taiwan, visit our Taiwan category.
- iShares MSCI Taiwan Index (NYSEArca: EWT): up 72.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.