Indicators show growth
The index of leading indicators rose 0.7 percent last month from January in a sign of economic recovery in the coming months, the economic planning body said yesterday.
The index, which indicates economic conditions three to six months in the future, registered its first increase after four consecutive monthly declines, the Council for Economic Planning and Development said.
"Our economy turned out to much better in February than our previous estimate in terms of manufacturing, trade and export orders, despite a still weaker financial side," said Hu Chung-ying (胡仲英), chief of the council's economic research department.
Hu said the council shares Taiwan Semiconductor Manufacturing Co (台積電) chairman Morris Chang's (張忠謀) view that there will be an economic upturn from the second quarter.
"But the US-led war on Iraq is bound to remain the overriding variable weighing on international oil prices and the global economy," Hu said.
"We have to monitor our economic showing in March. This, in turn, is expected to prove of great value in helping us to assess our economy for the rest of the year," he added.
The February composite indicator, which measures current conditions, rose to 23 points from 20 points in January.
Lin meets executives
Minister of Finance Lin Chuan (林全) yesterday met with 15 senior executives from the securities industry, exchanging views on the sector's regulatory policies.
During the two-hour closed-door luncheon, securities gurus urged the loosening of day trading rules, relaxation of restrictions on China-bound investments, raising of the investment ceiling on qualified foreign institutional investors (QFIIs) and expansion of the sector's business scope so as to compete with emerging financial holding companies.
Shin Kong raises investments
Shin Kong Life Insurance Co (新光人壽), the nation's second-biggest life insurer, plans to increase investments abroad to 35 percent of assets from almost a fifth to boost returns, Chinese-language media reported, citing president Pan Po-cheng (潘柏錚).
The move will add about NT$90 billion (US$2.6 billion) to the insurer's investments overseas, the reports said, citing Pan.
The insurer's assets totaled NT$606.8 billion, the reports said.
In January, the government allowed insurers to invest as much as 35 percent of assets overseas compared with a previous limit of 20 percent to help insurers suffering from a rising gap in investment returns and guaranteed yields paid on older policies.
Bonds gain on war concerns
Taiwan's local-currency bonds gained after US President George W. Bush said the campaign to oust Iraqi leader Saddam Hussein is "far from over."
Bonds also climbed on signs growth in the US, the nation's second-biggest export market after China, may slow.
"Bush's comments suggest the war isn't proceeding as well as expected," said Alex Kuo, a bond trader at Masterlink Securities Corp (元富證券).
"Major US economic indicators such as the manufacturing index and jobless figures will be reported in the coming week. If they don't turn out well, there's a higher chance the US central bank will cut rates, prompting Taiwan to follow suit," Kuo said.
NT dollar strengthens
The New Taiwan dollar yesterday turned stronger against its US counterpart, rising NT$0.004 to close at NT$34.790 on the Taipei foreign exchange market.
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