The inventory market in Taiwan seesawed this week, plummeting on the tariff information earlier than rebounding strongly after U.S. President Donald Trump put a pause on the tariffs.
In an announcement, Taiwan’s Monetary Supervisory Fee mentioned the market stabilisation measures on short-selling of shares had “certainly had the anticipated impact of successfully curbing speculative promoting”.
Whereas investor confidence has been progressively restored, the U.S. tariff coverage and responses by different international locations are nonetheless extremely unsure within the brief time period, it added.
International inventory market fluctuations are prone to preserve affecting Taiwan’s inventory market, the regulator mentioned.
Final week Taiwan additionally activated its $15-billion inventory stabilisation fund to prop up the market. The island’s benchmark inventory index has dropped 15% to date this 12 months. Quick sellers borrow shares they anticipate to fall, aiming to repay the mortgage for much less later to pocket the distinction.
