Foreign Investor Holdings in Taiwan Stocks and Deposits Reach Historic High.

TAIPEI: The value of foreign investors' holdings in Taiwan-listed stocks, bonds, and Taiwan dollar-denominated deposits soared to a historic high at the end of October, as reported by Taiwan's Central Bank on Tuesday. These foreign holdings amounted to US$844.3 billion, equating to 146 percent of the country's foreign exchange reserves, mirroring the level recorded in June 2024, stated Tsai Chiung-min, head of the bank's Foreign Exchange Department. According to Focus Taiwan, the substantial foreign holdings of Taiwan dollar assets reflect a positive outlook from foreign investors towards Taiwan's stock market, which saw a significant upturn in October. Tsai noted that the market, heavily comprised of technology stocks, aligns closely with the Nasdaq index. The boost in the market was further supported by favorable financial reports from several U.S. companies. In the foreign exchange market, the Taiwan dollar demonstrated relative stability against the appreciating U.S. dollar, outperforming other Asian cu rrencies. Tsai attributed this stability to a balanced supply and demand in the Taiwan dollar market, as foreign investors remained cautious in their dealings. Meanwhile, Taiwan's foreign exchange reserves declined for the second month in a row, reaching US$576.846 billion by the end of October. This represented a decrease of US$1.083 billion from September, largely due to the Taiwan dollar's depreciation against the U.S. dollar, despite some investment gains using the reserves, Tsai explained.