Taiwan Fund Monthly Insights - July, 2026

Taiwan’s equity market experienced a pullback in July 2026, with the TAIEX Total Return Index (the “Benchmark”) declining 7.25% in U.S. dollar terms, as investors took profits in AI-related stocks despite resilient technology fundamentals. Nevertheless, Taiwan’s economic backdrop remained strong, with advance estimates from the Taiwan’s Directorate-General of Budget, Accounting and Statistics (DGBAS) indicating real gross domestic product (GDP) growth of 12.92% year over year in the second quarter of 2026. While gains in non-technology sectors provided some support during the month, they were insufficient to offset declines in the technology sector and a record foreign institutional investor (FII) net sell-off of U.S. $19.3 billion in the same period. During the month, the best three performing Industry groups were Energy, Consumer Discretionary Distribution & Retail and Banks. The poorest performing industry groups were Technology Hardware & Equipment, Commercial & Professional Services and Utilities. We do not have any holdings in the Commercial & Professional Services and Utilities industry groups.