Government Plans To Increase Budget 5.4%

Taiwan dollar holding steady in early trade after finishing near session lows on Tuesday, USD/TWD last at 28.050. TWD rose for the first time in three days yesterday, though any gains could be subject to fragile risk sentiment in the region after Chinese markets slid earlier this week.

• There were reports late yesterday that the government plans to increase its budget 5.4% Y/Y in 2022, revenues are forecast to rise 9%. The faster increase in revenue is expected to narrow the annual deficit to TWD 13bn, 84.3% lower.
• Elsewhere there were reports that the nuclear reactor that shut down yesterday will be restarted today. Authorities have identified the cause of the shutdown and proposed improvements saying the incident was due to human error.
• The June monitoring indicator late yesterday printed 40, down slightly from the May print of 41 which was the highest since 1987. There are no releases on the economic docket today, participants look ahead to GDP data on Friday.