Taiwan stocks rebound after plunge, but quickly pare gains

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TAIPEI : Taiwan stocks jumped on Tuesday following a record plunge a day earlier, but shed some of the gains later in the morning amid lingering concerns over the outlook for the U.S. economy and tech companies. The main index jumped more than 4 per cent in early trade to as high as 20,640.

FILE PHOTO: A woman walks past Taiwan Stock Exchange logo outside their office in Taipei, Taiwan August 6, 2024. REUTERS/Carlos Garcia Rawlins/File Photo44 points, but quickly pared those gains to be up around 1.75 per cent at 0230.

"Investors are mostly concerned about the U.S. economy and the rapid rise of the yen. So yesterday's plunge was inevitable," said Jeff Chang, chairman of Cathay Securities Investment Trust, which oversees more than T$1 trillion in client assets. "Looking at fundamentals of the AI industry, nothing has changed compared to a month ago. It's a good buying opportunity for AI shares, both now and when they dip in the future," Chang said.

Premier Cho Jung-tai told reporters on Tuesday the fundamentals of Taiwan's economy were"very solid", adding authorities will close monitor the situation.

 

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