Taiwan Dollar Rises Most Since April on U.S. Data, Stock Rally

Taiwan’s dollar strengthened the most in seven months as demand for the greenback weakened after U.S. jobs data fell short of estimates.

The Bloomberg Dollar Spot Index declined and 10-year Treasury yields slid the most in a month after data showed U.S. employers added 214,000 jobs in October, compared with the 235,000 median estimate in a Bloomberg survey. Average hourly earnings increased 2 percent from the previous year, trailing the 2.1 percent forecast. Taiwan’s Taiex index of shares jumped 1.5 percent today as China announced that an equity link between Hong Kong and Shanghai will start Nov. 17.

“Non-farm payrolls were below expectations and wage growth was weak, so both the U.S. dollar and Treasury yields dropped a lot,” said Cindy Yu, an economist at Taipei Fubon Commercial Bank Co. The confirmed start for the stock link boosted sentiment for Taiwan’s stocks because it could draw more investors to Asia, she added.

Taiwan’s dollar appreciated 0.4 percent, the most since April 9, to NT$30.606 against its U.S. counterpart, after plunging 1.1 percent in the last seven trading days, prices from Taipei Forex Inc. show. One-month non-deliverable forwards in the Taiwan dollar rose 0.2 percent to NT$30.550, according to data compiled by Bloomberg. Global funds bought $519.5 million more local stocks than they sold today, exchange data show.

The equity link between Hong Kong and Shanghai will allow a net 23.5 billion yuan ($3.8 billion) a day in cross-border stock trades, giving foreign investors unprecedented access to Chinese equities.

Government bonds advanced, with the yield on the notes due October 2019 falling one basis point to 1.169 percent, GreTai Securities Market prices show.

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