TAIPEI (Taiwan News) — Public optimism toward Taiwan’s stock market hit a record high in June amid an AI-driven rally, while broader economic sentiment also improved, according to a Cathay Financial Holding survey released Monday.
Cathay Financial said optimism was boosted by a US-Iran ceasefire and negotiations, as well as higher capital expenditure forecasts from four major US cloud service providers, per CNA. These factors helped raise earnings expectations for Taiwanese companies and contributed to a sharp rise in Taiwan’s stock market in May.
The survey showed that the Taiwan stock market optimism index, which measures whether more respondents expect gains than declines, climbed to a record high of 54.5. The risk appetite index, which tracks the balance between those planning to increase and those planning to reduce stock investments, also reached a record high of 40.6.
Cathay Financial said sentiment was further lifted by the National Development Council’s April business monitoring indicator, which remained in the red expansion range, CNA reported. The survey’s current economic conditions optimism index, which reflects whether positive views outnumber negative ones, rose to 32, while the six-month economic outlook index increased to 25.5.
The current wage conditions index, measuring the balance of respondents reporting higher and lower wages, reached a record high of 18.8. The major purchase intention index, reflecting willingness to make large purchases, also hit a record high of 21.6.
Taiwan’s Directorate General of Budget, Accounting and Statistics forecasts economic growth of 9.64% and inflation of 1.93% this year, according to CNA. Survey respondents projected lower growth of 7.12% but higher inflation of 2.26%, with 59% expecting growth to exceed 7% in 2026.
The survey was conducted from June 1 to 7 and collected 13,376 valid responses from registered users of Cathay Life Insurance’s website and customers of Cathay United Bank.
