US Cancels Diplomatic Visit To Taiwan

The US has cancelled a diplomatic visit to Taiwan, a move that will appease China, but officially the cancellation is due to security concerns after last week's raid on the Capito. Taiwan's Foreign Ministry said on Wednesday it "understood and respected" the decision. China has repeated its firm opposition to US-Taiwan relations.

• Foreign investors have sold a net TWD 26bn of local equities since the start of this week. The TAIEX is up over 1% today at 15,663
• The CBRC has announced it is inspecting domestic banks to see if exporters are speculating in foreign exchange through overseas borrowing, according to Reuters reports. Inspectors are looking at any abnormal increases in foreign exchange volumes to see if manufactures are engaging in FX speculation
• USD/TWD is down 0.276 at 27.962, off session lows of 27.945, 10-year yield down around 0.5bps at 0.275%