Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
The TWD is expected to prop up in weeks ahead owing to renewed equity inflows and continued repatriation of investment, together with early signs of stabilizing and improving coronavirus situation in China, according to the latest research report from Scotiabank.
Foreign investors will return to Taiwan’s equity markets amid accommodative external liquidity and strong demand for 5G network development worldwide this year, after pulling out a net USD 1.79bn of funds from local stock markets year-to-date.
When risk aversion subsides, high dividend yields will make Taiwan stocks attractive to global investors again in a low interest rate environment. Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, on Monday reported that its revenue topped TWD100 billion (USD3.33 billion) for a sixth straight month in January, according to the Taipei Times newspaper.
The company last week said it was sticking to its Q1 revenue forecast of USD10.2-10.3 billion on strong demand for 5G smartphones and expectations for a minimal impact of the coronavirus outbreak, the report added.
In addition, continued investment by local firms can be seen returning from mainland China on concerns over their supply chain bracing for disruption from the coronavirus outbreak, even though the phase-one US-China trade deal has been reached and signed.
According to Taiwan’s official data, the repatriation of investment by Taiwanese firms with operations in mainland China amounted to TWD716.0 billion as of February 6. BoT Governor Veerathai Santiprabhob said last Thursday that the central bank is ready for additional appropriate measures against speculation on the baht that would significantly affect Thailand’s economic stability.
He also said that the central bank is ready for further relaxation of rules on overseas portfolio investment as the baht is still out of line with economic fundamentals despite recent weakness. Meanwhile, one day earlier, the BoT voted to lower the policy rate by 25 bp to 1.00 percent in a unanimous decision, the third cut in the last five meetings, Scotiabank further noted in the report.
