Taiwan TPP Membership Takes Positive Step

Taiwan dollar is stronger on Monday, USD/TWD dropping at the open as the rate plays catch up with the move lower in the greenback from Friday. USD/TWD last down 0.074 at 27.848, the lowest since August 19.

• There were reports earlier that Taiwanese chipmakers have signed long term deals to secure profits. According to the Economic Daily News UMC, Vanguard International Semiconductor and Powerchip Semiconductor Manufacturing have asked chip designers to sign deals on price and volume for two years on average with some agreements stretching to three years.
• Elsewhere over the weekend lawmakers from Japan's ruling LDP party backed Taiwan's entry into the TPP, a move that is seemingly intended to counter China's influence, in the latest effort by Tokyo to declare its public support to Taiwan. In another sign of geopolitical support two US ships sailed through the Taiwan Strait on Friday, the eighth time this year that US navy ships have sailed through the strait.
• Markets look ahead to PMI data later in the week.