FXstreet

Taiwan stocks fell on Friday ahead amid worries about growth, particularly in its all-important tech businesses. However, shares are likely to recover and continue a rally that has added 14% to the main index of the Taiwan Stock Exchange in the past year, according to a report last week by Nomura Securities. The index lost 33.78 points to 9,820.05 on Friday.

Looking ahead, flat U.S. interest rates will lead international investors to search for yield in Taiwan, the Japanese brokerage predicted. Nomura recommends “late cycle” banking stocks such as Fubon Financial, led by billionaires Daniel and Richard Tsai, and Cathay Financial, led by their billionaire cousin Tsai Hong-tu. Nomura also recommended financial services companies E.Sun and Mega. The current rally will lift the index to 10,239, when the market price-earnings ratio will be a projected 14.1 times, Nomura said.

More...