Taiwan's TAIEX Index rises 2.1% to 22,242.14 at close

Taiwan's TAIEX Index rises 2.1% to 22,242.14 at close

Taiwan's TAIEX Index closed at 22,242.14 on June 10, 2025, marking a 2.1% increase from the previous close. This uptick in the index comes amidst robust foreign investment inflows and a strong economic growth trajectory.

The surge in the TAIEX Index was driven by a significant increase in foreign investment inflows, with May registering the largest monthly net purchase in over 15 months. According to data from LSEG, foreign investors bought approximately $10.65 billion worth of equities across various Asian markets, including Taiwan, India, South Korea, Thailand, Indonesia, Vietnam, and the Philippines [3].

In Taiwan specifically, foreign investors purchased $7.28 billion worth of equities, the largest monthly cross-border net purchase since November 2023. This influx of foreign capital was fueled by easing concerns over the immediate economic impacts of increased U.S. tariffs and a subsequent 90-day pause for most countries, which helped revive interest in regional assets [3].

Additionally, Taiwan's thriving semiconductor industry continues to bolster its economy. The combined wealth of Taiwan’s 50 richest individuals rose to $197 billion in 2025, up from $174 billion in 2024. This increase was driven by robust demand for chips and a rising New Taiwan dollar, which powered a 13% increase in the combined wealth of Taiwan’s 50 richest [2].

The economic growth and investment trends in Taiwan are also supported by its diplomatic relations. Guatemala, one of Taiwan's few remaining diplomatic allies, reaffirmed its support for the island during a visit by President Bernardo Arevalo. Arevalo's visit underscores Taiwan's continued diplomatic strength and economic ties, which contribute to the overall positive sentiment in the country's financial markets [1].

Goldman Sachs has revised its earnings growth forecast for MSCI Asia Pacific ex-Japan (MXAPJ) to 9% for both 2025 and 2026, citing stronger macro growth in China and U.S.-exposed markets. The brokerage also noted that $600 billion in AI-related investments from Saudi Arabia to U.S. firms are expected to benefit Taiwan and Korea, although the impact may be partially offset by a weaker dollar [3].

In conclusion, Taiwan's TAIEX Index rise reflects a combination of strong foreign investment inflows, robust economic growth driven by the semiconductor industry, and supportive diplomatic relations. These factors collectively contribute to a positive outlook for Taiwan's financial markets.

References:
[1] https://www.reuters.com/world/china/guatemala-president-reaffirms-support-brothers-taiwan-2025-06-05/
[2] https://www.forbes.com/sites/forbespr/2025/06/04/combined-wealth-of-taiwans-50-richest-on-forbes-list-rises-13-to-us197-billion/
[3] https://news.az/news/asian-equities-bounce-back-with-biggest-foreign-inflows-in-15-months