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
-
Review: Eden Roc Cap Cana – fun, sun and golf in the CaribbeanTravel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yetThe chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry
