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No Need to Fear Duanwu, Taiwan Stocks May Challenge 22,000 Points in June

No Need to Fear Duanwu, Taiwan Stocks May Challenge 22,000 Points in June

Experts analyze that the technical aspects of Taiwanese stocks show strength amidst weakness, indicating no need to excessively worry about fluctuations during Duanwu. The U.S. tariff situation remains tense, but Taiwanese stocks benefit from Nvidia's favorable earnings report, alleviating market concerns and absorbing the negative sentiment surrounding AI-related stocks. With the market anticipating that the tariff issues may ultimately not be implemented, the weighted index has successfully withstood the impacts from last Friday's Asian and U.S. stock fluctuations, with June projected to challenge the 22,000-point mark.

Insights from experts, including Liao Wan-Ting from Uni-President Investment Consulting and Huang Guo-Wei from Mega International Investment Consulting, indicate that after a significant rebound, the weighted index is in a consolidation phase but remains above support. They hold an optimistic view for the upcoming period, supported by three favorable factors:

  • 1. The constitutional challenge to the counter tariffs;
  • 2. Nvidia's earnings alleviating market worries;
  • 3. The technical situation of Taiwanese stocks remains stable.

Analysts suggest taking partial profits when approaching the 22,000-point resistance zone and are poised to re-enter when the index tests support around 20,000 points. They recommend focusing on trending AI-related stocks, those benefiting from the appreciation of the TWD, and stocks from the sports and leisure sectors previously affected by tariffs, as these could see gains as negative impacts dissolve.