Taiwan Turmoil: Billions In Government Intervention Fails To Arrest Stock Slide

Well, it was a rough day in Taiwan.

The Taiex fell the most since November amid what traders called a wave of selling by foreign investors dumping big-caps amid “heightened risk aversion.”

Yes, “heightened risk aversion.” In other words: “they’re selling because of Trump and Kim”.

The index was extending a two-day decline and although foreigners may have been selling, the government was apparently buying. Or at least according to Taipei-based Economic Daily News who claimed that no fewer than eight government-run banks stepped in on Wednesday to buy some NT$1.96 billion of shares.

Well they didn’t show up on Thursday. Or if they did, they were not very effective. Here’s the visual:

Taiex2

So that sucks, right? Fortunately, the index was trading at a goddamn 27-year high hit Monday, so there’s some room for a “healthy” correction.

Obviously, that didn’t bode well for the Hang Seng, which fell more than 1%, extending its own two-day decline:

Hangseng

All of this added to a generalized sense of angst in the overnight sessions, proving we are not, in fact, out of the woods yet.

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One thought on “Taiwan Turmoil: Billions In Government Intervention Fails To Arrest Stock Slide

  1. Pingback: ‘Traders Are Rushing For The Exit’: Hong Shares Collapse Most Since November - Biiwii.com

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