Taiwan Dollar Gains Before European Summit; Bonds Little Changed
Taiwan’s dollar advanced, halting three-day decline, as optimism European leaders will step up efforts to resolve the region’s debt crisis bolstered sentiment toward emerging-market assets.
Overseas funds bought $363 million more Taiwanese stocks than they sold so far this week, according to exchange data. Government bonds were little changed before official data due tomorrow that economists predict will show export growth slowed last month.
“Today is a little bit better in terms of risk sentiment,” said Andy Ji, a Singapore-based currency strategist at Commonwealth Bank of Australia. “Asian currencies, including the Taiwan dollar, may still depreciate in the next two quarters because of outflows from the region as European banks scramble to recapitalize.”
Taiwan’s dollar climbed 0.2 percent to NT$30.168 against its U.S. counterpart at the close, according to Taipei Forex Inc. The currency touched NT$30.505 on Nov. 25, the weakest level since Oct. 12.
Europe may combine temporary and permanent rescue facilities to bolster its bailout resources, the Financial Times reported. The region’s leaders will hold a summit in Brussels on Dec. 8 and Dec. 9.
Taiwan’s exports rose 8.6 percent in November from a year earlier after having increased 11.7 percent the prior month, according to the median estimate of economists in a Bloomberg News survey before the finance ministry data.
The yield on the 2 percent bonds due July 2016 was 0.992 percent, compared with 0.989 percent yesterday, according to Gretai Securities Market.
To contact the reporter on this story: Lilian Karunungan in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com