Taiwan’s market fortunes tied to TSMC like never before

FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018.REUTERS/Tyrone Siu/File photo

TAIPEI: Taiwan’s largest stock is so dominant it’s even underpinning a surge in the local currency.

Of the more than US$4bil that foreign investors have sent into Taipei-listed equities this year, about 60% has landed with Taiwan Semiconductor Manufacturing Co. Inflows and the chipmaker’s gains his month helped the Taiwan dollar strengthen 1.4%. There are signs the stock, trading at its most expensive in a decade, is overbought.