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.