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Taiwan Stocks Face Quarterly Support Test Amid Six Key Tailwinds
Electronic Technology · Semiconductors · economic_daily · 2026-10-23
2330
Taiwan's stock market is bracing for a critical support test at the quarterly moving average, with analysts highlighting six key factors that could drive a rebound.
What Happened
Market Volatility and Challenges: Taiwan stocks are currently facing a defensive battle at the quarterly moving average due to geopolitical tensions in the Middle East and rising U.S. Treasury yields. Analysts suggest the market will likely undergo a period of bottom-testing between the quarterly and half-year moving averages until uncertainties subside.
Key Market Indicators: Investors are closely monitoring the upcoming earnings reports from U.S. tech giants like Microsoft, Alphabet, and Apple, specifically looking for cloud revenue data and AI capital expenditure guidance. Additionally, the Federal Reserve's interest rate decisions and foreign institutional investor activity in the futures market remain critical variables.
Six Pillars of Support: Analysts point to six positive factors supporting the market, including potential progress in Russia-Ukraine peace talks, declining U.S. bond yields, record-high export orders, upward revisions in corporate earnings, pro-market government policies, and strong domestic institutional buying.
Domestic Institutional Support: Domestic buying remains a key stabilizer, with state-backed banks and investment trusts consistently increasing their holdings. This influx of capital, combined with retail investors bottom-fishing for long-term value, is helping to absorb heavy selling pressure from foreign investors.