{"id":15408,"date":"2024-10-18T06:36:27","date_gmt":"2024-10-18T06:36:27","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15408"},"modified":"2024-10-18T06:36:27","modified_gmt":"2024-10-18T06:36:27","slug":"twindex-rises-amid-mixed-asian-markets","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/twindex-rises-amid-mixed-asian-markets\/","title":{"rendered":"TWINDEX Rises Amid Mixed Asian Markets"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TWINDEX rises as China\u2019s stimulus sparks optimism, with Taiwan\u2019s tech sector benefiting from improved regional sentiment.<\/li>\n\n\n\n<li>U.S. retail sales data strengthens the dollar, influencing demand for Taiwan\u2019s key exports and shaping future tech sector growth.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>China&#8217;s recent stimulus efforts have had a noticeable effect on Asian markets, with Taiwan\u2019s TWINDEX benefiting from the broader regional impact of China\u2019s policies.<\/p>\n\n\n\n<p>While China\u2019s economy continues to struggle, the People\u2019s Bank of China\u2019s (PBOC) launch of the Securities, Fund, and Insurance Swap Facility has provided a much-needed boost to the equity market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">China\u2019s Stimulus Boosts Regional Sentiment<\/h2>\n\n\n\n<p>Mainland Chinese blue chips rose by 0.78%, and this optimism extended to Taiwan\u2019s tech-driven economy, where the TWINDEX climbed in response to renewed hope for economic support across the region.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Several chipmaker stocks rallied on Thursday amid optimism over AI demand in Taiwan Semiconductor Manufacturing Company&#39;s blowout third quarter earnings.<a href=\"https:\/\/twitter.com\/search?q=%24TSM&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$TSM<\/a> jumped 9.8%, pushing the company&#39;s market capitalization past the $1 trillion mark. <a href=\"https:\/\/t.co\/9CkVkTJRaO\">pic.twitter.com\/9CkVkTJRaO<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1847015163519529290?ref_src=twsrc%5Etfw\">October 17, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>China\u2019s third-quarter economic data confirmed that its economy grew at the <strong><a href=\"https:\/\/www.reuters.com\/world\/china\/chinas-economy-likely-have-slowed-q3-beijings-2024-target-risk-2024-10-17\/\">slowest pace since early 2023<\/a><\/strong>, amplifying expectations for additional monetary easing measures.<\/p>\n\n\n\n<p>This expectation is critical for Taiwan\u2019s market, particularly given its heavy reliance on exports to China.<\/p>\n\n\n\n<p>A resurgence in Chinese demand could provide support to Taiwan\u2019s tech sector, which is a major driver of the TWINDEX.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-35-1024x442.jpeg\" alt=\"\" class=\"wp-image-15409\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: TWINDEX falls to 1953.07, with bearish momentum building, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><em>.<\/em><\/p>\n\n\n\n<p>The TWINDEX chart shows a close at <strong>1953.07<\/strong>, after reaching a session high of <strong>1969.70<\/strong> and a low of <strong>1947.82<\/strong>.<\/p>\n\n\n\n<p>The trend for the day reflects a modest decline of <strong>0.45%<\/strong>. Moving averages (5, 10, 30-period) suggest a short-term downtrend, with the price moving below the moving averages.<\/p>\n\n\n\n<p>The <strong>MACD<\/strong> (12, 26, 9) line has crossed below the signal line, with increasing negative histogram bars, indicating growing bearish momentum.<\/p>\n\n\n\n<p>The global market environment has been shaped by the strength of the U.S. dollar, which has hovered close to <a href=\"https:\/\/www.reuters.com\/markets\/currencies\/dollar-rides-trump-trade-toward-third-weekly-rise-2024-10-18\/\" title=\"\"><strong>an 11-week high<\/strong><\/a>.<\/p>\n\n\n\n<p>Despite the dollar\u2019s strength, U.S. retail sales data showed a stronger-than-expected 0.4% increase last month, giving the Federal Reserve greater flexibility in its rate-cut path.<\/p>\n\n\n\n<p>This could indirectly impact Taiwan\u2019s economy, as a more patient U.S. rate path could help stabilise global demand, especially for technology exports.<\/p>\n\n\n\n<p>Taiwan\u2019s TWINDEX, which tracks many semiconductor companies, will likely react to any shifts in U.S. monetary policy that influence tech demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">U.S. Elections Push Tech Demands<\/h2>\n\n\n\n<p>Key to the TWINDEX\u2019s future performance will be the evolving geopolitical landscape.<\/p>\n\n\n\n<p>As Donald Trump <strong><a href=\"https:\/\/www.reuters.com\/world\/us\/billionaire-cuban-stumps-harris-musk-hits-trail-trump-2024-10-17\/\">gains traction<\/a><\/strong> in the U.S. presidential election, his potential tariffs and policies could fuel inflationary pressures, pushing gold to a new record high of $2,711.90.<\/p>\n\n\n\n<p>These inflationary trends could have both positive and negative implications for Taiwanese exporters, depending on how global trade flows are impacted by U.S. trade policies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Crude Oil on the Rise<\/h2>\n\n\n\n<p>In the broader commodities space, crude oil prices saw a slight increase, with Brent rising by 0.31% to $74.68 a barrel, supported by a surprise drop in U.S. inventories.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/oil-prices-rise-as-traders-eye-china-stimulus\/\">Oil Prices Rise as Traders Eye China Stimulus<\/a><\/strong><\/p>\n\n\n\n<p>However, the looming concern over global demand kept prices from rising significantly, a factor that could indirectly affect Taiwan\u2019s trade-dependent economy.<\/p>\n\n\n\n<p>Traders on VT Markets who focus on the TWINDEX should monitor China\u2019s fiscal and monetary policies closely, as further stimulus could lead to increased demand for Taiwanese tech products.<\/p>\n\n\n\n<p>Additionally, movements in the U.S. dollar and shifts in U.S. monetary policy will play a critical role in shaping global market dynamics and their potential impact on Taiwan\u2019s tech-heavy economy.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TWINDEX rises as China\u2019s new stimulus boosts sentiment, while U.S. economic data and global trade risks shape the outlook. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,56],"class_list":["post-15408","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-twindex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15408"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15408\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}