Another enormous climb in the Taiwanese dollar today, up almost 8% over the last two sessions against the USD, by far the biggest two-day increase on record.
▶️ So what's going on? The Taiwanese dollar (TWD) has been surging due to a combination of economic, trade, and market factors in 2025: ✔️ Easing Trade Tensions: Speculation about reduced U.S.-China trade tensions, particularly following indications that China is open to trade talks with the U.S., has boosted optimism for Taiwan’s export-driven economy. ✔️ Strong Economic Growth: Taiwan’s GDP grew at an annualized rate of 9.67% in Q1 2025, with annual growth of 5.37%, surpassing forecasts. A ✔️ Tech Sector Strength: Strong U.S. tech earnings, particularly from companies like Microsoft and Meta, have signaled sustained demand for AI and semiconductors, where Taiwan plays a critical role through companies like TSMC. This has driven foreign capital inflows and supported TWD appreciation.
Did Japan's finance minister threaten liquidation of US Treasuries?
Addressing a question on a Tokyo TV program on Friday, Japan Financial Minister Kato said the country's $1.1 trillion in Treasury holdings - the highest of any foreign creditor - could be a "negotiation card" in its trade talks with Washington but "whether or not we use that card is a different decision." In other words, Japan is threatening to sell some/all of its $1.1 trillion in bonds if tariffs are imposed. NLI Research Institute said just minutes after the TV remarks, "Katsunobu Kato’s comments on US Treasuries could be interpreted as dangerously provoking the US government." He added that for the US, unstable long-term rates are a concern, and having Japan continue to hold US Treasuries is beneficial, while maintaining fiscal soundness and the dollar’s status as the reserve currency are important issues that would have positive effects in the medium to long term. Translation: chaos in the US would be painful, but it would be catastrophic for Japan. Source: www.zerohedge.com
Holy cow...
Look at the Japanese 30Y 😨 Source: TXMC on X
No, this isn’t a crypto meme coin…
It’s the Japanese stock market. Source: Geiger Capital
Vietnam is by far the worst-hit market in Asia today
Index is down 5.5%, worst day in over 4 years. Volumes are nearly 300% the recent average. Source: David Ingles @DavidInglesTV
Japan | Tokyo inflation exceeds forecasts, keeping BOJ on rate hike path
- Bloomberg
👉 The Bank of Japan held interest rates on Wednesday as the rising risk of a global trade war and potential downturn in the US weighed on Japan’s hope for a sustained economic revival.
👉The unanimous decision, which came at the conclusion of a two-day meeting of the Japanese central bank’s policy board, left the short term policy rate at about 0.5 per cent. 👉The result was widely forecast by economists and had been priced in by markets, according to traders. 👉In a statement accompanying the decision, the BoJ warned that “high uncertainties” remained around Japan’s economic activity and prices. The central bank made particular reference to the “evolving situation regarding trade and other policies in each jurisdiction”. Source: FT
Investors expect European countries to purchase more military equipment from Asia after Donald Trump threatened to withdraw the US’s security umbrella.
Link >>> on.ft.com/4iC5Fby Source: FT, Bloomberg
