INSIDE TAIWAN: TWD Rises After 2Q GDP Growth, BOJ Easing Package
(Bloomberg) -- TWD advances for fourth day, gaining along with Asian currencies after BOJ’s limited easing boosted JPY. Taiwan 2Q GDP rebounded from previous quarter’s contraction
- TWD reached 31.872 vs USD, highest since Aug 2015, close 0.09% higher at 31.926; gained 0.45% this week
- Overseas investors sells local shares for the first time since July 5; net selling NT$1.4b ($43.5m)
- Sentiment in TWD may have been affected as BOJ’s easing package misses expectation, Maybank senior FX analyst Christopher Wong says
- Yield-seeking investors may become selective
- Key to watch oil price and equity market next week
- Taiwan GDP grew 0.69% y/y in 2Q, vs est. 0.7% and -0.68% in 1Q
- Statistics Bureau proposes +1.1% in 2017 govt spending
- Govt revenue to increase 1.2%, deficit NT$153.6b
- Taiwan 2Q GDP growth strong, may slowdown toward yr-end, ANZ economist Raymond Yeung says
- Weak sequential growth in 2Q poses downside risks to full-yr GDP forecast of 1.1%, Goldman Sachs economists Irene Choi and Goohoon Kwon write in a note today
- Expect CBC to hold back rate cut until 4Q 2017, on condition that Fed hikes 100 bps by end-2017
- Yield of 10-yr govt bond rises 1 bp to 0.6856%
- Local govt bonds are sold as BOJ easing disappoint; move in line with U.S. Treasury, Concord Securities bond trader Aaron Shie says
- 10-yr note yield sees strong support at 0.68%-0.69% in near term
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Christopher Wong (Malayan Banking Bhd)
Goohoon Kwon (Goldman Sachs Group Inc/The)
Irene Choi (Goldman Sachs Group Inc/The)
Raymond Yeung (Australia & New Zealand Banking Group Ltd)
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