Tide turns for Taiwan

Emerging markets have been all the rage this year, but, unusually, the rising tide has not lifted all boats.

Emerging markets have been all the rage this year, but, unusually, the rising tide has not lifted all boats.

In Asia, the more popular markets (in South Korea, for example) have risen upwards of 40% already in 2005. However, over in Taiwan investors have had a tougher time of it: there, stocks have actually fallen 6% year to date.

But might things finally be on the turn? Analysts at Merrill Lynch think so, says George Hsu on Bloomberg.com. They have just started to recommend that investors buy in to the country in the wake of better-than-expected third-quarter GDP numbers and improving corporate prospects.

Taiwanese companies are working off their inventories, orders are rebounding and earnings downgrades are coming to an end, says Leslie Norton in Barron's, with the happy result that, according to Citigroup, average earnings will rise a nice 23% in 2006 (company earnings in Korea are only forecast to grow 14% over the same period).

A good way to gain exposure to Taiwan is via an exchange traded fund. Barclays Global Investors have recently launched the MSCI Taiwan iShare (www.ishares.net).

Recommended

Andrew Hunt: why it's a great time to be a deep value investor
Value investing

Andrew Hunt: why it's a great time to be a deep value investor

Merryn talks to Andrew Hunt, author of Better Value Investing, about his adventures in the market's dark underbelly, looking for the hated and neglec…
22 Oct 2021
Back on track: why you should invest in railways
Share tips

Back on track: why you should invest in railways

Rail transport suffered a severe blow in the pandemic. But while post-Covid-19 working patterns may reduce revenue, trends in technology, long-distanc…
22 Oct 2021
Emerging markets: the Brics never lived up to their promise – but is now the time to buy?
Emerging markets

Emerging markets: the Brics never lived up to their promise – but is now the time to buy?

Twenty years ago hopes were high for Brazil, Russia, India and China – the “Brics” emerging-market economies. But only China has beaten expectations. …
18 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021