Ukraine Invasion Unnerves Global Funds Bracing for Taiwan Risk
- Swings in Taiwan dollar jumped, global funds sold local stocks
- Island’s officials don’t think an attack by China is imminent
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The conflict in Ukraine is sparking renewed jitters about tensions between China and Taiwan, and the worries are showing up in the island’s assets.
A gauge of one-week implied volatility in the dollar against the local currency jumped to a six-month high on Friday while the Taiwan dollar slid to the weakest since October. The conflict in Ukraine may raise the risk premia for China and Taiwan over the medium term, according to Morgan Stanley.