The local currency rose by the most in four weeks today as equity indexes rallied across Asia after Japan reported factory output rose 2 percent in January from the previous month, compared with the 1.5 percent median estimate in a Bloomberg News survey. Foreign investors bought $2.1 billion more Taiwanese stocks than they sold this month, bringing net purchases for 2012 to $4 billion, according to exchange data. Markets in Taiwan were closed for the last two days.
“Risk-taking appetite is quite strong,” said James Wang,” a fixed-income trader at Yuanta Securities Co. in Taipei. “If stock performances continue to stay strong, there’s a possibility bond yields will rise.”
The Taiwan dollar strengthened 0.6 percent to NT$ 29.420 against its U.S. counterpart from the end of last week, the most since Jan. 31, according to Taipei Forex Inc. The currency climbed 0.7 percent in February.
Asia’s emerging-market economies will expand 7.3 percent in 2012, compared with 1.2 percent for advanced nations, the International Monetary Fund predicted on Jan. 24. Euro-area countries will contract 0.5 percent, while the U.S. will expand 1.8 percent, according to the Washington-based lender.
The yield on the government’s 1.25 percent bonds due in March 2022 was little changed at 1.278 percent, prices from Gretai Securities Market show.
The overnight money-market rate, which measures interbank funding availability, dropped one basis point to 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center. The rate also slipped one basis point, or 0.01 percentage point, for the month.
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