Preface

The global market landscape is poised for significant shifts as various geopolitical and economic factors converge. **US tariff plans** threaten further inflationary pressures, impacting stock indices worldwide. With Taiwan's stock market facing potential fluctuations, it's essential to stay informed about key developments and strategic decisions.

Recently, major events have influenced sectors ranging from foreign investments to manufacturing costs. This article aims to provide a comprehensive overview ahead of the market's movements on April 2nd, underscoring the importance of careful monitoring and strategic planning as markets react to **global tariff developments** and operational changes.

Lazy bag

Key points to note: The upcoming US tariffs on April 2nd may intensify market volatility. Taiwan’s stock index continues its downward trend due to foreign investors' substantial net-out, leading to heightened caution ahead of the Qingming holiday. Market players anticipate further decisions impacting logistics, with the Shanghai Containerized Freight Index (SCFI) showing signs of recovery, ending its 10-week decline.

Main Body

1. Market Uncertainty and US Tariffs: The US administration's announcement to enact new tariffs on April 2nd against select countries has heightened global market uncertainty. Dubbed the 'Dirty 15,' these nations are expected to face increased tariff barriers, triggering inflation concerns as the markets grapple with potential disruptions. As a result, Taiwan’s weighted stock index saw continued declines, hitting its lowest point since mid-September last year. In light of inflation fears, indices, including the NASDAQ and Dow Jones, have experienced considerable downturns, reflecting the market's cautious sentiment.

2. Foreign Investor Outflow: Over March, foreign investors have shown a decisive preference for risk mitigation, as evidenced by only two days of net buying within the entire month. The continuous sell-off resulted in over NT$4277.83 billion in net outflows. Major companies such as Foxconn and TSMC witnessed substantial sell-offs, impacting their stock valuations and market positions significantly compared to past major sell-offs in 2020 and 2024.

3. Leadership Changes in Major Corporations: Foxconn has witnessed a successful leadership transition within its rotational CEO framework, aimed at strengthening its global supply chain capabilities amidst geopolitical uncertainties. The second appointee is expected to enhance the company's strategic focus and bolster its operational resilience.

4. Cost Pressures Across Industries: Hua Paper announced a 5% price increase starting April in response to rising pulp prices and operational costs. This trend reflects broader industry movements where cost adjustments are necessitated by sustained raw material price hikes and increased operating expenses.

5. Shipping Index and Recovery Signs: The SCFI highlighted a changing trend with a notable end to its 10-week depreciation streak. An increase in shipping rates across major routes points to industry expectations of increased demand and service adjustments, suggesting a recalibration of market strategies by shipping companies.

6. Currency Exchange Developments: The New Taiwan Dollar showed resilience against the US Dollar, recovering slightly from a near-decade low, buoyed by foreign currency inflows and market interventions. The central bank's active management has been crucial in stabilizing exchange rates amidst global pressures.

Key Insights Table