Taiwan Banks See AI Demand Supporting US, Taiwan Stocks in August

Cathay United Bank, Taipei Fubon Bank, CTBC Bank and Taishin Bank have issued their August market outlooks after sharp swings forced investors to reassess crowded positions. The lenders said the fundamental case for US and Taiwan equities remains intact, supported by robust demand from major AI companies and resilient corporate earnings, even as near-term volatility continues to test market sentiment.

The four banks recommend building positions in stages and diversifying across assets and regions rather than making concentrated bets in August. Investors should monitor US Treasury yields as well as movements in the yen and US dollar, they said. Shifts in borrowing costs and foreign-exchange markets could affect equity valuations, cross-border fund flows and the durability of AI-led gains in both US and Taiwan stocks.