Geoff Yu at BNY notes that Taiwan’s sturdy fairness efficiency in 2026 has coincided with web institutional outflows, primarily from U.S. pensions and hedge funds, whereas APAC and EMEA buyers present assist. TWD FX exercise stays subdued and tied to rebalancing quite than directional demand, with Taiwan’s foreign money nonetheless screening as basically undervalued.
TAIEX power, muted TWD flows
“Taiwan appears totally different, with TWD exercise tied extra to periodic rebalancing than to outright directional fairness demand. Each currencies nonetheless display as basically undervalued, which helps clarify why investor curiosity has held up even with out significant FX appreciation.”
“Taiwan: Taiwanese equities noticed $1.73bn of web institutional outflows yr thus far. Once more, the Americas have been the primary sellers, with $4.33bn of web gross sales. U.S. pension funds and hedge funds led the transfer, making up nearly 75% of whole promoting from the area.”
“Taiwan regarded extra like rotation than exit. The market additionally noticed heavy semiconductor promoting (-$5.59bn), however that was offset by shopping for in Know-how {Hardware} (+$3.74bn), Capital Items (+$232mn) and Banks (+$132mn). The message: buyers weren’t exiting Taiwan wholesale.”
“By investor kind in Taiwan: The combination was totally different. Pension funds (-$3.12bn) and hedge funds (-$1.78bn) have been the primary sellers, whereas authorities and company accounts purchased $906mn. Taiwan promoting was much less mutual-fund pushed and extra concentrated in pensions and hedge funds than South Korea.”
“Taiwan stays a lot quieter. TWD exercise continues to be subdued. Spot volumes, which monitor fairness purchases extra instantly, are under the rolling one-year common.”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor.)
