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.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence