Taiwan's hot money boosts specific stock sectors

The Taiwanese dollar's rapid appreciation has triggered an influx of hot money, potentially boosting the Taiwan stock market. This surge is expected to favor specific sectors. Experts suggest that the rising value of the New Taiwan dollar, coupled with foreign investment, increases the likelihood of short-term gains in the stock market. Investors are advised to focus on large-cap stocks favored by foreign investors and national funds. While the strong NTD presents opportunities, potential exchange rate losses should be considered. The article highlights the potential benefits for domestic-focused sectors like telecom and food, which could benefit from lower import costs.