The Russian invasion of Ukraine has sent shockwaves through global financial markets, including Taiwan. But, after falling by 1,000 points in the past few days, Taiwan’s stocks are beginning to rally.
The war in Ukraine has shaken global markets. But in Taiwan at least, Wednesday brought good news. Taiwan’s TAIEX stock index jumped 200 points, closing at just over 17,000. And stocks in shipping and electronics are rallying after a rocky few days.
Financial Supervisory Commission Chair Huang Tien-mu says the stock market is in good health overall. He says recent losses may have been caused by foreign investors adjusting their portfolios, and now Taiwanese investors are jumping in while stock prices are low.
Deputy Finance Minister Ruan Tsing-hua says that the ministry and the National Financial Stabilization Fund are ready to act if investors lose confidence in the market.
The war in Ukraine still looms over the financial markets, despite shows of confidence from officials. Authorities say they will keep monitoring the potential exposure of the finance sector, manage risks and investment security, enhance financial controls, and comply with international sanctions on Russia. They sum it up with the slogan: “without fear, without favor”.
Huang says Russia is still willing to pay off its financial obligations, and Taiwan’s investments in the insurance industry are relatively small. He says the key concern right now is the resilience of financial institutions.
Taiwan’s total exposure in Ukrainian and Russian insurance industries is less than NT$1.5 billion (US$53 million) and the authorities say they’re confident they have things under control. However, the ongoing war is sure to continue affecting global financial markets.
Tomasz Koper, RTI News