Taiwan Stocks Jump as Lawmakers Vote to Scrap Trading Tax PlanBloomberg News
Taiwanese stocks rose the most in nearly two weeks after Hon Hai Precision Industry Co. earnings beat estimates and lawmakers voted to scrap a planned levy on equity trades.
The Taiex index advanced 1.5 percent at the close in Taipei, rebounding from its lowest level in seven weeks. Technology shares were among the biggest gainers. Taiwanese legislators approved revisions to income-tax laws to scrap a planned capital-gains levy. Stock gauges climbed across Asia as concern faded about the geopolitical impact of the attacks in Paris and higher U.S. borrowing costs.
“The rise in Taiwan stocks is more of a technical rebound from the recent plunge, which was caused by concern about the increase in interest rates in the U.S.,” said Parker Wu, a portfolio manager at the Agriculture Bank of Taiwan in Taipei. Stock gains were also helped by the abolition of the planned capital-gains tax, Wu said.
Trading volumes were about 11 percent higher than the 30-day daily average, according to data compiled by Bloomberg. Hon Hai, the largest member of billionaire Terry Gou’s Foxconn Technology Group that gets half its revenue from Apple Inc., added 2.7 percent after reporting an 11 percent increase in third-quarter profit to NT$37.9 billion ($1.2 billion), beating the NT$34.8 billion average of estimates. Taiwan Semiconductor Manufacturing Co., the world’s biggest contract chipmaker, climbed 2.6 percent.
“The end of the earnings season also helps today’s market,” said Peter Tzeng, senior vice president at IBTS Investment Consulting Co. in Taipei. “Exporters had benefited from the depreciation of Taiwan dollar during the third quarter.”
Foreign investors have pulled $729 million from Taiwanese stocks in November, paring this year’s inflows to $4.5 billion, data compiled by Bloomberg show. The Taiex index trades at 12.3 times projected 12-month earnings, compared with 11 times for the MSCI Emerging Markets Index.
— With assistance by Shidong Zhang