Taiwan Takes Trade Steps

Taiwan dollar is slightly stronger in early trade, USD/TWD is down 0.021 at 27.885 but still inside yesterday's range. The Taiex garnered some attention yesterday as the index rose 1.2%, the index is higher again today. There was chatter the market is showing signs of overheating as the market cap of the index hits $2.1tn, around three times the IMF's forecast for Taiwanese GDP.

• On the geopolitical front trade representatives from Taiwan and Australia met via video conference and made progress on relations. The ministers said they look forward to deepening cooperation on areas such as energy, finance and biotechnology. The meeting comes a week after the US and Taiwan held productive talks.
• On the coronavirus front there were 28 new cases on Monday, the health minister said the government hasn't decided to lift soft lock-down yet though there was talk that there was room to ease restrictions.
• Markets await labour market data later in the session, the rate is expected to be broadly in line with the April print at 3.72%.