Taiwan Semiconductor is trading at a political discount, which is unlikely to narrow after the election of the China-critical candidate Lai Ching-te.
Source: Bloomberg, HolgerZ
China skeptic Lai Ching-te wins Taiwan’s presidential election
Ruling-party candidate Lai Ching-te emerged victorious in Taiwan’s presidential election, a man Beijing has labeled an “instigator of war”, in a vote that has enormous geopolitical implications across not just the Taiwan Strait, but between the US and China, too. Lai’s victory represents an unprecedented democratic milestone: the 1st time a political party in Taiwan has won a 3rd straight presidential election. Kuomintang or KMT, Beijing’s preferred political partner, gained roughly 33% of the vote. Beijing has repeatedly labeled Lai as a “stubborn worker for Taiwan independence” and a dangerous separatist. There are also fears this could in turn influence frosty China-U.S. relations and security in the broader Indo-Pacific region. Source: HolgerZ, Bloomberg, CNBC
China vs. Japan in one chart! Japanese stocks have outperformed their Chinese counterparts by a whopping 63% since the start of 2023.
Source: Jeroen Blokland
A few days ahead of Taiwan election... Taiwan: the island that matters - or why Taiwan is important to China, USA and the rest of the world...
Imagine the implications of any blocade or invasion on the semiconductor value chain and the magnificent7... Source: BBC
BREAKING: Japan's Nikkei 225 stock index rises above 34,000 for the first time since March 1990. Breakout from a 30-year base!
- Breakout + test from 30-year base (blue circle) - Successful test of 2nd base (purple circle) - $NIKKEI now trading at 34-year high - Still below ATH recorded in 1989 - Yen is undervalued by ~40% on PPP-basis (source: ) Along with hitting a fresh 33-year high, Japan's stock market is now up 120% from its low in 2020. Both technology and health care stocks have been the main drivers. Recently, Warren Buffett began betting on a recovery of Japan's economy. Japan is back in a bull market.
Money is flowing out of China for the first time in over 25 years
Source: AnilVohra1962, Safe, Macrobond, Clock Tower
A new all-time-high for Nvidia $NVDA up +6.4% on the day
The chart looks rather bullish with an ascending triangle breakout as the weekly MACD begins to cross to the upside... The big news of the day was Nvidia planning to begin mass production of its AI chips designed for China that comply with U.S. export rules starting in Q2 - Reuters Source chart: Jake Wujastyk
New Year, New Low!
After a shallow rally, Chinese hashtag#equities just made a new low. Down 15% from their peak in May last year, down 22% from their 2021 peak. Sources: Jeroen Blokland, Bloomberg
