Stock market fundamentals strong despite coronavirus fears: MOF

01/29/2020 05:41 PM
CNA file photo
CNA file photo

Taipei, Jan. 29 (CNA) The fundamentals of Taiwan's stock market remain strong, despite fears surrounding the spread of a new form of coronavirus that have sent international markets tumbling in recent days, Deputy Finance Minister Juan Ching-hua (阮清華) said Wednesday.

In an interview, Jung, who also serves as Executive Secretary of the National Stabilization Fund, said the ministry will keep a close watch when the Taiwan Stock Exchange (TWSE) reopens Thursday for the first day of trading since Jan. 20.

Although the TWSE is a "thin market," and subject to short-term, news-driven fluctuations, investors should have confidence that "Taiwan's fundamentals are quite strong," Jung said.

According to Jung, both government and private observers have issued positive economic growth forecasts, citing factors including the repatriation of assets, growth in direct investments from abroad and beneficial supply chain shifts.

Given that the stock market reflects the health of the broader economy in the long term, Jung said he hopes investors will not be deterred by the possibility of short-term volatility.

In a separate interview on Wednesday, Executive Yuan Spokeswoman Kolas Yotaka said various public investment funds managed by the government would each make their own professional assessment of potential response measures, should market volatility increase.

International indexes in Europe, the United States, Japan and South Korea have all experienced declines this week, as fears rise regarding the ability of the authorities to control the spread of a coronavirus outbreak, which has already passed 6,000 cases in China.

The Hang Seng index in Hong Kong fell by 2.28 percent on Wednesday, the first day of trading after the Lunar New Year holiday.

(By Yeh Su-ping and Matthew Mazzetta)

Enditem/AW

    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.