Emerging-market stocks are always highly exposed to the local and global economy. Taiwan's benchmark index, the TAIEX, is no exception, with so-called cyclical stocks comprising 86% of the market. But while financials or commodities tend to dominate most emerging-market indices, in Taiwan's case, technology is the heavyweight industry, accounting for just over a third of the market. Semiconductors are the main subsector.
The biggest defensive segment is consumer goods. Food and drink firms and personal and household goods producers make up most of this. They collectively comprise 8% of the market. The rest of that segment contains cyclical car and car-part makers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What did Rachel Reeves announce in the Spending Review?Chancellor Rachel Reeves announced budget increases for some departments, including a £29 billion annual injection for the NHS, but others will see cuts. What was announced in the Labour Spending Review, and what does it mean for your money?
-
Divorce financial settlement fights surge – why it pays to agree terms earlyLawyers expect more court battles as tax rises and sharp falls in asset values make divorcing financially more difficult.
