(July 14): Taiwan reported a roughly 80% profit from a nine-month-long intervention to support the island’s stock market following the Trump administration’s move to impose tariffs, though it has now exited its position.
The disclosure opens a window into how Taiwan’s financial authorities manage markets, with the intervention having started amid a three-day market rout that included the benchmark’s worst day on record, a 9.7% plunge on April 7. The fund helped support sentiment, which recovered as the US tariffs faced setbacks and as demand for the island’s artificial intelligence-related tech spurred exports.
The fund’s months-long intervention and lengthy selldown make it difficult to compare directly with the benchmark stock index, which has more than doubled since the fund started buying. The rally has been largely fuelled by Taiwan Semiconductor Manufacturing Co (TSMC) and other companies at the core of the AI boom.
While the government fund has ended its intervention, the ministry cautioned that risks lie ahead.
“Taiwan’s stock market is easily affected by the international political and economic situation,” the finance ministry said.
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