Outside of HKD markets, TWD is also busy,....>

TAIWAN: Outside of HKD markets, TWD is also busy, with TWD seeing a marked drop

in the Thursday Asia-Pac session, closing at 31.505 against the USD - the

highest close since May31. The move comes alongside a drawdown from the

multi-week highs printed on Tuesday (highest since early May), although in the

lowest volume session for Taiwanese equities since June 4th. Reports of foreign

capital flows out of Taiwan (with similar being reported in Hong Kong) didn't

help, with foreign funds being net sellers of Taiwanese stocks to the tune of

$241mln, the largest net sell bias since May 24th.

-The drop in spot TWD helped prompt a series of options trades, however, with

total notional crossing around twice the usual average. Some of the more

interesting trades crossing during the Asia-Pac session included a $400mln

31.65/31.95 call spread, rolling off in one month's time.

-The CBC rate decision takes place next week (Thursday) with early expectations

for the central bank to keep policy unchanged at 1.375%.