Taiwan Election Fails to Cheer Markets as Focus Turns to Policy
- Ruling DPP won presidency but lost legislative majority
- Analysts see potential legislative gridlock on policy
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Taiwan’s stocks posted modest gains while its currency weakened as investors digested the weekend’s election results, with the potential for legislative gridlock and continued cross-strait tensions tempering sentiment.
The ruling Democratic Progressive Party won the presidency but lost its legislative majority, suggesting it will have to work with other major parties — including the more China-friendly Kuomintang — on policy. The Taiex stock benchmark closed just 0.2% higher, paring a bulk of its earlier gain. The local dollar fell 0.3%, with traders citing foreign outflows.