Market behaviour shows that global risk is diminishing
Market indices indicate that we are entering a period of global stability, but this does not mean markets are immune from domestic challenges caused by inflation and higher rates
IN A recent meeting, US Secretary of State Antony Blinken told China President Xi Jinping that the US does not support Taiwan independence and stood by its stance of maintaining the status quo, affirming decades of US policy towards Taiwan. US President Joe Biden quickly countered this, calling Xi a dictator.
However, it seems Blinken’s conciliatory comments carried more weight, because the Taiwan Index ignored Biden’s provocative insult and continued to rally strongly. Despite all the talk of conflict over Taiwan, the market seems confident that the status quo will remain unchanged, and that mutterings about the future of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) are misplaced.
Like the Taiwan Index, the TSMC chart also shows a strong rally.
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