HONG KONG/TAIPEI : Investors are putting aside geopolitical tensions to pile in to Taiwan stocks, with foreign inflows the biggest in years, thanks to soaring artificial intelligence and chipmaking stocks.
Rather, investors say it's all the more sturdy as the bogged-down conflict deters Chinese action and risks can be managed by keeping positions liquid with one eye on a possibly quick exit."What we are seeing now is a tactical trade, which tends to be based on a shorter-term investment horizon before the tech sector's valuation peak," said Carlos Casanova, Asia senior economist at Union Bancaire Privee.
Famous investor Warren Buffett called geopolitical tensions"a consideration" in his decision to last year sell most of a stake in the giant Taiwan Semiconductor Manufacturing Co just a few months after buying it. Investors say Taiwan's market is uniquely positioned to benefit because it is exposed to the sector's growth from applications to components, where demand is rebounding.