Taiwan Fund Monthly Insights - August, 2024

September 25, 2024

In early August, both the U.S. and Taiwan stock markets encountered rapid corrections due to the unexpected interest rate hike by the Bank of Japan and the delay in shipment of NVIDIA Corporation’s (“NVIDIA”) latest line of computer chips. Subsequently, U.S. stocks experienced a V-shaped rebound as the market anticipated a possible U.S. Federal Reserve (the “Fed”) cut in September. However, compared to the U.S. market, the rebound in Taiwan stocks was relative weaker. Additionally, due to the higher expectations of NVIDIA’s earnings report, the market faced pullback pressure at the end of the month, with technology stocks driving the decline.