The Taiwan stock market experienced fluctuations but closed higher, with foreign investors continuing to buy financial stocks; Yulon will produce Mitsubishi electric vehicles, the housing market's completion surge reaches a 20-year high, and the CPI rose by 2.03% compared to the previous year.
On May 7, 2025, the Taiwan stock market increased slightly by 23.9 points to close at 20,546.49, with foreign investors having been net buyers of financial stocks and bond ETFs for four consecutive days. Yulon Motor will produce electric vehicles for Mitsubishi, to be exported to Australia and New Zealand in 2026. In the first quarter of 2025, the number of residential use permits issued reached 31,616, marking the highest level in nearly 20 years. April's CPI annual growth rate was 2.03%, driven by rising fruit prices. Formosa Plastics Group's April revenue was mixed, with Nan Ya Plastics seeing growth, while Formosa Petrochemical's revenue declined due to tariffs and weak demand.
Key Updates
05/07 22:00
The Taiwan stock market experienced fluctuations but closed higher, with foreign investors continuing to buy financial stocks; Yulon will produce Mitsubishi electric vehicles, the housing market's completion surge reaches a 20-year high, and the CPI rose by 2.03% compared to the previous year.
On May 7, 2025, the Taiwan stock market increased slightly by 23.9 points to close at 20,546.49, with foreign investors having been net buyers of financial stocks and bond ETFs for four consecutive days. Yulon Motor will produce electric vehicles for Mitsubishi, to be exported to Australia and New Zealand in 2026. In the first quarter of 2025, the number of residential use permits issued reached 31,616, marking the highest level in nearly 20 years. April's CPI annual growth rate was 2.03%, driven by rising fruit prices. Formosa Plastics Group's April revenue was mixed, with Nan Ya Plastics seeing growth, while Formosa Petrochemical's revenue declined due to tariffs and weak demand.
Taiwan Stock Market Closes Higher Amid Fluctuations, Foreign Investors Buy Financial Stocks and ETFs for Four Consecutive Days
On May 7, the Taiwan stock market rose over 160 points in early trading, turned negative during the session, and then consolidated with reduced volume. The TAIEX closed up 23.9 points at 20,546.49 points, a gain of 0.12%, maintaining the 5-day moving average. The three major institutional investors collectively bought a net NT$8.69 billion, with foreign and Chinese investors buying a net NT$136.45 billion, while proprietary traders and investment trusts sold a net NT$99.95 billion and NT$27.81 billion, respectively.
Foreign investors continued to increase their holdings in financial stocks and bond ETFs. The top ten net buys included Yuanta Taiwan Top 50 Inverse 1 (about 36,000 shares), CTBC Financial (19,900 shares), Innolux, Chang Hwa Bank, Uni-President Enterprises, Cathay Financial, E.Sun Financial, Shin Kong Financial, Taishin Financial, and China Steel. CTBC Financial has been increased by foreign investors for six consecutive days, with a cumulative net buy of over 170,000 shares. In contrast, investment trusts used financial stocks as a source of funds, selling CTBC Financial, Fubon Financial, Cathay Financial, and others.
Yulon to Manufacture Mitsubishi Electric Vehicles for Oceania in 2026
Japan's Mitsubishi Motors and Foxtron (Hon Hai Precision Industry Co., Ltd.) signed an OEM cooperation memorandum for electric vehicles, with Foxtron responsible for development and Yulon Motor in Taiwan handling production. The electric vehicle is expected to be launched in Australia and New Zealand in the second half of 2026, as part of Mitsubishi's 2023-2030 product plan for Australia.
Mitsubishi stated that the vehicle will feature excellent electric driving performance and advanced infotainment systems, and will be promoted under its own brand. This cooperation helps Mitsubishi reduce investment costs and expand overseas markets. Foxconn Chairman Liu Yangwei had previously announced this cooperation in March, stating that both parties would complete the formal signing soon.
Real Estate Transactions Sluggish, Residential Building Permits Hit Record High
Despite continued sluggishness in real estate transactions, the issuance of residential building permits in the first quarter of 2025 reached 31,616 homes, a new high since statistics began in 2006, with a year-on-year increase of 0.9%. Building permits issued reached 35,221 homes, a year-on-year increase of 44.7%. This phenomenon reflects the large-scale project launches by developers since 2020, with construction periods of 3 to 5 years leading to recent completions.
In terms of regional distribution, supply increased significantly in the northern region. New Taipei City issued 6,833 homes, a year-on-year increase of 67.1%; Taoyuan City 6,144 homes, a year-on-year increase of 13.5%; Taipei City 2,078 homes, a year-on-year increase of 14.8%; Taichung City 5,222 homes, a year-on-year increase of 7.8%. The southern region performed weakly, with Kaohsiung City issuing 3,257 homes, a year-on-year decrease of 25.5%; Tainan City 2,200 homes, a year-on-year decrease of 7.6%.
For building permits, New Taipei City and Taoyuan City saw year-on-year increases of 105.9% and 117.2%, respectively, reaching new highs in recent years. Taichung City increased by 48.6%, and Kaohsiung City by 52.5%. Taipei City saw a year-on-year decrease of 15.4%, and Tainan City slightly decreased by 2%.
April CPI Annual Growth Rate at 2.03%, Fruit Prices Surge
The Directorate-General of Budget, Accounting and Statistics announced that the annual growth rate of the Consumer Price Index (CPI) for April 2025 was 2.03%, surpassing the 2% inflation warning line for several consecutive months. The average CPI annual growth rate for the first four months was 2.15%. The rise in April's CPI was mainly due to continued high fruit prices, with guava up 99.40% and bananas up 60.18%. Other rising items included pork (5.36%), dining out (3.48%), rent (2.40%), and medical expenses (2.39%).
Excluding fruits, vegetables, and energy, the core Consumer Price Index (CPI) annual growth rate was 1.66%. Goods and services rose by 2.07% and 2.00%, respectively. Transportation and communication fell by 0.76% due to declines in fuel and communication costs.
Formosa Plastics Group Revenue Diverges, Nan Ya Plastics Grows, Formosa Petrochemical Declines
Formosa Plastics Group announced its April revenue, showing divergent performances among its four subsidiaries. Nan Ya Plastics benefited from demand for AI servers and automotive materials, with rush orders for electronic materials boosting revenue by 0.7% month-on-month and 5.9% year-on-year, making it the best performer among the four.
Formosa Plastics, Formosa Chemicals & Fiber, and Formosa Petrochemical saw revenue declines. Formosa Petrochemical was affected by U.S. tariffs, falling light oil prices, and weak petrochemical demand, with revenue down over 20% year-on-year. Formosa Plastics and Formosa Chemicals & Fiber also showed month-on-month and year-on-year declines, reflecting external pressures faced by the petrochemical industry.
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