Taiwan stocks approach 50,000 points, foreign investors resell, New Taiwan dollar fell below 31.8 yuan intraday

The Taiwan stock market is approaching 50,000 points, fluctuating at a high level, foreign investors have turned oversold, and the rise of the New Taiwan Dollar has been restrained. The exchange rate of the New Taiwan dollar against the U.S. dollar first rose above 31.7 yuan this morning. In the afternoon, it fell below 31.8 yuan due to the shift of foreign hot money. In late trading, the price of NT$31.7 was maintained due to adjustments by the central bank, and finally closed at 31.781 yuan, a slight increase of 0.7 cents. The exchange rate had five consecutive reds, and the trading volume was US$2.337 billion.

The Taiwan stock market continued to rise by 110.51 points today, closing at 49822.55 points, setting another record high. However, after approaching 50,000 points, the gains turned volatile. The three major legal entities sold more than 20.786 billion yuan in total, of which foreign investors sold more than 6.657 billion yuan, indicating that the pressure on high-end profit-taking has increased.

The New Taiwan dollar opened at 31.76 yuan in early trading, rising to a maximum of 31.699 yuan and hitting a low of 31.823 yuan, fluctuating up to 1.24 cents throughout the day.

Foreign exchange market participants pointed out that the recent record highs in Taiwanese stocks and the return of foreign funds are still the main forces supporting the strength of the New Taiwan Dollar; however, as the Taiwanese stock market approaches 50,000 points, if foreign capital increases its profit-taking efforts and the momentum of capital inflows weakens, the short-term rise of the New Taiwan Dollar will also be suppressed.

Looking forward to the market outlook, in addition to observing whether the Taiwan stock market can stabilize at 50,000 points and the trends of foreign investment, the trend of the international US dollar is also key. The market is focusing on the minutes released by the Federal Reserve to observe officials' views on subsequent interest rate policies. If the Fed's attitude is hawkish, a stronger US dollar may increase pressure on the New Taiwan dollar.

In addition, the trend of the Japanese yen is also an important observation indicator for Asian currencies. Bank of Japan President Kazuo Ueda's speech today did not release a clear signal to raise interest rates. In response, the yen weakened and once again fell below 158 yen per US dollar. If the yen continues to weaken, it is also worth paying attention to whether it will bring pressure on Asian currencies simultaneously.

According to statistics from the central bank, as of 4 p.m., the U.S. dollar index fell 0.15%, and major Asian currencies showed gains and losses, with the Japanese yen depreciating 0.28%, the New Taiwan dollar appreciating 0.02%, the Korean won appreciating 0.28%, and the Singapore dollar appreciating 0.14%.