Halister News

(Bloomberg) -- Taiwan dollar falls most in over 2 months as local stocks slid amid disappointing new iPhone and geopolitical tension as well as a special trading day tomorrow ahead of next week’s holidays; bonds decline.

• TWD falls 0.7% to 31.510 per dollar today, most since June 24, and eroding weekly gains to 0.6%
• Taiwan shares decline most in two months after iPhone 7 launch; overseas investors sell Taiwan equities first time in six days, net selling $7.6b ($241.4m)
• Foreign investors have adjusted their positions to prevent any potential risk, since Taiwan trades tomorrow, Jih Sun Securities economist Cary Ku says
  • Local tech stocks under selling pressure since new iPhone provides no surprise and Apple share price fell yday
  • North Korea’s nuclear bomb test also damages sentiment
  • Correction likely short-lived and USD/TWD to trade ~31.5, because Fed Sept. hike unlikely
• Rebound in U.S. Treasury yield overnight, local 10-yr bond yield’s inability to trade lower yday, and rising expectation that CBC will not cut interest rate, are spurring correction in govt bonds today, Fubon Financial bond trader Edward Chang says
  • Sees low trade volume tomorrow, yield of 10-yr bond within 0.65%-0.69%
• Yield of 0.625% Taiwan govt bond due Sept 2026 rises 2 bps today to 0.6770, declining 1 bp this week