Geopolitical Tensions Simmer

Taiwan dollar is slightly weaker on the session, USD/TWD up 0.003 at 27.893, but off yesterday's highs of 27.92 which denoted the weakest level for TWD in over a month. Geopolitical tensions continue to simmer in Taiwan, US President Biden has confirmed that he talked with Chinese President Xi about Taiwan and that the two leaders agreed to abide by the Taiwan agreement. This refers to the one China policy, which means that while the US recognises Beijing instead and not Taipei any disagreements will be solved by peaceful means. Meanwhile Bloomberg reported that the government plans to spend 64% of a TWD 240bn special budget on home-built anti-ship equipment. The Taiex is up around 0.4% in early trade, Hon Hai Precision earnings showed revenue rose 8.8% to a Q3 record. Markets look ahead to CPI and WPI data due later today.