Taiwanese markets re-opened after Lunar......>

TAIWAN: Taiwanese markets re-opened after Lunar New Year holiday to witness a

delayed (and thus amplified) sell-off in reaction to the novel coronavirus

outbreak. USD/TWD has surged 27 pips and currently trades at TWD30.28, the

highest level since Dec 16. The 50-DMA at TWD30.26 has just been taken out, but

the rate struggles to make further headway.

- Local equities have tumbled on the back of a worry re: impact of spreading

coronavirus on the island's economy, including through the disruption of supply

chains in the vital semi-conductor industry. Nonetheless, Taiwan Dep FinMin

Frank Juan said that there are no plans at the moment to call a meeting of the

National Stabilisation Fund re: stock market moves.

- Taiwan has confirmed 8 coronavirus cases, incl. the first domestic infection.

- A firmer push above the 50-DMA at TWD30.26 would encourage bulls to target the

23.6% retracement of the Aug 6 - Jan 14 slide at TWD30.29. A further lift would

expose the TWD30.40 mark. Meanwhile, bears need a slip under the Jan 22 high of

TWD30.02 to fill the opening gap, and shift the focus to the multi-year low of

TWD29.85 printed on Jan 14.