China’s Shanghai market isn’t the only one benefiting from its government’s aggressive actions to restart the economy, Taiwan is gaining ground as well.
Since the March 9 bottom, the iShares MSCI Taiwan Index ETF (EWT) is up 51% compared to a gain of 33% for the SPDR S&P 500 (SPY) over the same time period. EWT tracks a cap-weighted index of the largest Taiwanese firms. Top holdings include Taiwan Semiconductor, Hon Hai Precision Industry and Mediatek.
The Taiwan economy is already seeing signs of a turnaround. The Economic Daily News reported that auto makers had boosted weekend shifts to increase production. Warming relations between Taiwan and the mainland are also raising investor optimism. China’s cabinet recently approved a plan to further develop the country’s coastal economic zone near Taiwan.