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Taiwan is Asia’s hottest investment as China, tech concerns fade

Bloomberg Published on Thu, Aug 04, 2016 / 3:02 PM GMT+8

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(Aug 4): Global investors can’t get enough of Taiwan.

Overseas funds poured US$5.4 billion ($7.2 billion) into the island’s equities last month, taking inflows for the year to US$11.6 billion and making Taiwan the most popular destination for investors among nine Asian markets tracked by Bloomberg. That’s helped send both the benchmark stock gauge and the currency to one-year highs.

Fuelling gains are bets that the imminent release of Apple Inc.’s iPhone 7 will boost profits at Taiwan suppliers and relief that the new political era under President Tsai Ing-wen hasn’t led to a conspicuous deterioration in ties with China. While a stronger currency may crimp overseas earnings for exporters, Prudential Financial Inc.’s local unit sees room for further gains as Asia’s second-highest dividend yield and below-average valuations lure investors.