Exports Continue To Soar

Data released after market yesterday showed Taiwan's exports rose for the seventh straight month in January, boosted by surging global demand for tech amid the pandemic. The MOF also adduced new technologies and favourable base effects.

• Exports jumped 36.8% Y/Y $34.27bn in January, the highest monthly figure on record. Meanwhile, the country's imports for January rose 29.9% also the highest single month amount on record. As a result, a trade surplus widened to $6.19bn.
• Following the release the MOF said it expected to see Q1 exports rising by double digits, and gaining 3%-8% in February.
• Elsewhere equity markets in the region saw outflows from foreign funds to the tune of $334m yesterday, the fourth consecutive day of outflows.
• TWD has strengthened in the NDF market, 1-month NDF's have falled to 27.886 from an intraday peak above 27.92. 1-month implied volatility has risen slightly from its 2021 lows, last at 3.85%, but remains subdued as the central bank continues to "smooth" the rate into the close. As a reminder Taiwan's foreign exchange reserves hit a new high at the end of January as the central bank stepped in to cap the appreciation of the TWD against the greenback.
• Volumes are expected to be thin today as we approach the LNY holiday.