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Taiwan Stocks Show Resilience: Analysts See Market Bottoming Out Post-US Midterms
Electronic Technology · Semiconductors · economic_daily · 2026-11-02
2330
Taiwanese stocks displayed significant resilience yesterday as domestic institutional buying countered heavy foreign selling, with analysts suggesting the worst is over.
What Happened
Market Performance: Taiwan's stock market staged a dramatic recovery yesterday, narrowing losses significantly after an initial sharp decline. Despite heavy selling pressure from foreign investors, strong support from local investment trusts and state-backed funds helped the index recover from its intraday lows.
Analyst Outlook: Financial analysts suggest that the worst phase for the Taiwan market has passed. With the U.S. midterm elections approaching, the market is expected to return to fundamentals once the political uncertainty clears, potentially leading to a rebound in November.
Institutional Flows: Foreign investors have sold a record 2.44 trillion TWD in Taiwanese stocks this year, yet domestic institutions have countered this with record-breaking buying. Investment trusts have maintained a 15-day buying streak, providing a crucial buffer against the ongoing foreign capital outflow.
Key Indicators: Investors are now shifting their focus toward upcoming earnings reports from major tech giants and U.S. employment data. While the index closed below the 45,000-point mark, the long lower shadow on the daily chart indicates active buying interest at lower levels.