Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Taiwan Stock Exchange Weighted Index / Event-Driven

The <a href="https://www.smartkarma.com/entities/taiwan-stock-exchange-weighted-index" target="_blank" data-smartkarma-citation="entities:26056:1" rel="noopener">Taiwan Stock Exchange Weighted Index (TWSE INDEX)</a> is 17.5% higher from its lows a couple of months ago. The margin balance is also at a new high and has risen by nearly US$3bn over the last 2 months.At the same time, short notional has increased by US$3.7bn. Of the increase, only US$470m has come from new shorts being created while the rest is a result of higher stock prices.The <a href="https://www.smartkarma.com/entities/taiwan-stock-exchange-weighted-index" target="_blank" data-smartkarma-citation="entities:26056:1" rel="noopener">Taiwan Stock Exchange Weighted Index (TWSE INDEX)</a> is one of the best performing Asian markets over the last year and could be susceptible to a pullback. The sharp increase in margin balance could lead to an equally sharp unwind that could lead to a repeat of the forced selling in May.With geo-political tensions and the COVID19 variants still around, plus the higher margin balances, we would look to reduce long positions in Taiwan or put appropriate hedges in place to cushion the impact of a sharp selloff in markets.

The Taiwan Stock Exchange Weighted Index (TWSE INDEX) is 17.5% higher from its lows a couple of months ago. The margin balance is also at a new high and has risen by nearly US$3bn over the last 2 months.At the same time, short notional has increased by US$3.7bn. Of the increase, only US$470m has come from new shorts being created while the rest is a result of higher stock prices.The Taiwan Stock Exchange Weighted Index (TWSE INDEX) is one of the best performing Asian markets over the last year and could be susceptible to a pullback. The sharp increase in margin balance could lead to an equally sharp unwind that could lead to a repeat of the forced selling in May.With geo-political tensions and the COVID19 variants still around, plus the higher margin balances, we would look to reduce long positions in Taiwan or put appropriate hedges in place to cushion the impact of a sharp selloff in markets.

Taiwan: TWSE & Margin Balance at New Highs

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Foxconn Technology Corp / Equity Bottom-Up

SGX Asia Currencies and Commodities Insights

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Taiwan Semiconductor (TSMC) / Technical Analysis

<a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> has floundered within a flat bull triangle range with energy brewing for an upside break if we see an earnings beat with Taiwan being one of the few remaining long bets with focus.Price has formed a bullish flat range, awaiting a catalyst to pop higher with risk pivot at 580. 605/10 is the level to clear to attract buyers. The bigger bull wedge that began in early 2021 represents a bullish backdrop and awaits ignition above 610.TSMC is ripe for a relative bounce versus the Taiwan index.

TSMC (2330 TT) has floundered within a flat bull triangle range with energy brewing for an upside break if we see an earnings beat with Taiwan being one of the few remaining long bets with focus.Price has formed a bullish flat range, awaiting a catalyst to pop higher with risk pivot at 580. 605/10 is the level to clear to attract buyers. The bigger bull wedge that began in early 2021 represents a bullish backdrop and awaits ignition above 610.TSMC is ripe for a relative bounce versus the Taiwan index.

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

The SIA has released May semiconductor revenue statistics and the month broke all records for both revenues and unit shipments.  This is a continuation of the trend that this analyst has been reporting on since this time last year.  It appears that there is still plenty of strength in this market to allow further records to be broken.

The SIA has released May semiconductor revenue statistics and the month broke all records for both revenues and unit shipments.  This is a continuation of the trend that this analyst has been reporting on since this time last year.  It appears that there is still plenty of strength in this market to allow further records to be broken.

May Semiconductor Revenues Break a Record Once Again

SGX Asia Currencies and Commodities Insights 

Taiwan

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

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Taiwan Semiconductor (TSMC) (2330 TT)

Taiwan: TWSE & Margin Balance at New Highs

The TWSE and margin balances are both at a new high. With geo-political concerns and COVID-19 still major factors, we would look to lower long...

Brian Freitas

SGX Asia Currencies and Commodities Insights

By Macro Hive SGX Asia Currencies Insights We turn neutral on the yuan after the broad-based RRR cut and sharp drop in CGB yields. Still...

Singapore Exchange Ltd (SGX)

TSMC Geared for a Beat Rally

TSMC (2330 TT) has floundered within a flat bull triangle range with energy brewing for an upside break if we see an earnings beat with Taiwan...

Thomas Schroeder

May Semiconductor Revenues Break a Record Once Again

Even the semiconductors that are not in a dire shortage are in tight supply, driving prices and revenues to extraordinary heights. This Insight...

Jim Handy

SGX Asia Currencies and Commodities Insights

By Macro Hive SGX Asia Currencies Insights PBoC confidence in the recovery supports our bullish yuan view. We remain cautiously constructive...

Singapore Exchange Ltd (SGX)

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