Hot Money Pushes Stocks and Currency Higher; NTD Trading Volume Hits 5th Largest in History

Taiwan's stock market momentum remained strong today, with both price and volume hitting new highs. The New Taiwan Dollar (NTD) surged by over 0.1 NTD during the session, but subsequent dollar buying and central bank intervention capped the gains, closing at 31.384, up 0.044. However, the influx of hot money into Taiwan stocks was intense, with total trading volume in the Taipei and Yuanta forex markets reaching $4.257 billion, the 5th largest in history. MSCI's semi-annual index adjustment took effect today, raising Taiwan's weight in global, emerging, and Asia-ex-Japan indices. The market saw broad gains across electronics, finance, and traditional sectors, closing at a record 44,732.94 points with a record turnover of NT$1.816 trillion. While the NTD opened at 31.4, it pushed toward 31.3 on the back of stock market strength, but was limited by importer and government fund buying. In the short term, the NTD remains closely tied to stock market capital flows.