Trump Tariffs and Taiwan's Stock Market: National Security Fund Intervenes as FSC Announces Stabilization Measures
18 April 2025 路 Uncategorized 路
Following President Donald Trump鈥檚 announcement of tariffs on global imports, world stock markets experienced a wave of panic selling. The Dow Jones Industrial Average declined sharply for two consecutive days last Friday, losing over 1500 points and erasing approximately $6 trillion (roughly NT$198.6 trillion) in market value. Due to the Qingming holiday break, Taiwan's stock and foreign exchange markets were closed but are anticipated to face significant selling pressure when they reopen on April 7th.
The Nasdaq Composite Index has fallen more than 20% from its record high of 20173.89 points in December 2024, officially entering a bear market.
In response, the National Security Fund is considering holding an emergency session ahead of its originally scheduled meeting on April 14th to potentially stabilize investor confidence if needed.
The Financial Supervisory Commission (FSC) has announced three measures designed to support the stock market from April 7th through April 11th: allowing investors to use alternative liquid and objectively assessable collateral for margin calls, reducing daily short-selling limits on listed stocks, and increasing minimum margin requirements for short sales.
Investment strategist Hsu Yi-Ta of FuBen Investment Trust suggests that an American recession could disproportionately impact Asia due to limited alternatives. He advises investors considering stop-loss strategies to shift funds into the more resilient U.S. market or bonds.
Hsu emphasizes maintaining long-term investment discipline and continuing investments despite current volatility.
He attributes this crisis primarily to unsustainable high-interest dollar debts, rather than tariffs alone, viewing it as America鈥檚 attempt to address trade imbalances through assertive policies. Hsu predicts a period of adjustment before the economy stabilizes under new conditions.
The Nasdaq Composite Index has fallen more than 20% from its record high of 20173.89 points in December 2024, officially entering a bear market.
In response, the National Security Fund is considering holding an emergency session ahead of its originally scheduled meeting on April 14th to potentially stabilize investor confidence if needed.
The Financial Supervisory Commission (FSC) has announced three measures designed to support the stock market from April 7th through April 11th: allowing investors to use alternative liquid and objectively assessable collateral for margin calls, reducing daily short-selling limits on listed stocks, and increasing minimum margin requirements for short sales.
Investment strategist Hsu Yi-Ta of FuBen Investment Trust suggests that an American recession could disproportionately impact Asia due to limited alternatives. He advises investors considering stop-loss strategies to shift funds into the more resilient U.S. market or bonds.
Hsu emphasizes maintaining long-term investment discipline and continuing investments despite current volatility.
He attributes this crisis primarily to unsustainable high-interest dollar debts, rather than tariffs alone, viewing it as America鈥檚 attempt to address trade imbalances through assertive policies. Hsu predicts a period of adjustment before the economy stabilizes under new conditions.