April Trade Data Suggests External Headwinds Not As Severe

Taiwan's April trade data was a little better than expected. The closely watched export figures, released late yesterday, came in at -13.3% y/y, versus -19.4% expected and -19.1% prior. Looking at the detail, there was some improvement in the machinery/electrical equipment sub component, now at -6.5% y/y, from -15.9% in Mar (this sub component represents around 70% of total exports).

• By country, exports surged to Japan +19.8% y/y, from -16.9% prior. Export growth to China was less negative, albeit at the margins (-26.5% y/y, versus -35.0% prior). To the US, we were -10.3% y/y versus -20.7% in Mar.
• Taiwan export momentum has been improving since the Jan trough (-21.2% y/y), so it suggests some tentative signs of less bearish external headwinds.
• This comes ahead of China Apr trade data later today. The chart below shows China export growth against export growth for Taiwan, South Korea & Singapore.
• Other detail showed imports at -20.2% y/y for Taiwan in Apr, (-22.6% expected), which left the trade surplus at $6.71bn, against a $4.10bn forecast.

Fig 1: Key Asian Export Trends

Source: MNI - Market News/Bloomberg