The New Taiwan dollar strengthened as stock gains fueled optimism that overseas funds would add to their holdings of local shares as risk appetite increases.
The local currency advanced as the benchmark TAIEX extended a seven-week rally, rising 1.3 percent yesterday. The MSCI Asia Pacific index jumped as much as 0.9 percent after the Standard & Poor’s 500 index climbed 3.8 percent on Friday. Foreign investors bought US$804 million more Taiwanese shares than they sold this month, stock exchange data showed.
US STOCKS
“The [New] Taiwan dollar is stronger this morning due to the stock market which has gained quite a bit,” said Henry Lin, a foreign-exchange trader at Shin Kong Commercial Bank (新光商銀) in Taipei. “Investors are also taking their cues from US stocks.”
The local currency rose 0.3 percent to NT$33.680 against the greenback as of 3:04pm, according to Taipei Forex Inc. The currency fell last week on speculation the central bank intervened to stem gains.
“The central bank has not been in the market so far this morning but it could come in the afternoon,” Lin said. “The central bank doesn’t want the Taiwan dollar to appreciate too much.”
The central bank warned local banks last Tuesday not to speculate on gains in the NT dollar, the Chinese-language Commercial Times reported on Wednesday, citing unidentified traders.
CROSS-STRAIT TIES
The local currency also strengthened on optimism of improved cross-strait relations.
Taiwan plans to propose to China that they start talks on cross-strait economic cooperation at the end of this year, Chao Chien-min (趙建民), deputy chairman of the Mainland Affairs Council said yesterday.
“The government’s policy to improve Taiwan’s relations with China is also helping sentiment in the market,” Lin said.
China and Taiwan took another step toward free conversion of their currencies after the People’s Bank of China agreed to buy back the yuan in Taiwan, the Chinese-language Economic Daily News reported yesterday, citing an unidentified official.
The two sides may use the Bank of China Ltd (中國工商銀行) and the Bank of Taiwan (台灣銀行) for settlement, the report said.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
RSS