Taiex Under Pressure Again

Taiwan dollar is weaker at the open, USD/TWD gapping up to near yesterday's high. The pair last trades at 27.986. The Taiex is under pressure again, the index last down 4.11% after closing with losses of 3.79% yesterday, recoupling losses of up to 8.5% midway through Wednesday's session. The heavy sell off is blamed on unwinding of leveraged positions resulting in the fasted liquidation of such positions since 2018. Taiwan's National Stabilization Fund Committee have said they will adopt measures if needed to address the stock rout.

• Elsewhere, Taiwan has addressed comments from China that it will punish separatists such as Taiwan foreign minister Wu calling the comments ridiculous. In the response Taiwan's Ministry of Affairs said the Chinese government lacks respect and understanding for universal values, creating geopolitical tension and conflict through its authoritarian expansionism which seeks to impose its unilateral stance on other countries.
• On the coronavirus front the government have confirmed they will tighten restrictions to contain the virus as well strengthening the screening process for shorter quarantines of business travelers. Apple Daily reported that New Taipei city will halt operations of venues including hostess bars, sports centre and libraries.