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Weaker yen unlikely to hit Taiwan's exports: UBS bank

Weaker yen unlikely to hit Taiwan's exports: UBS bank

Taipei, Jan. 22 (CNA) A weaker Japanese yen is unlikely to affect Taiwan's exports significantly because Taiwan's exporters generally do not directly compete against Japanese companies, an analyst at Swiss bank UBS AG said Tuesday. "Taiwan is just part of the global supply chain and does not make many end products when compared with Japan," said Pu Yonghao, managing director and regional chief investment officer for Asia-Pacific at UBS. "Although a weaker yen may have some impact on Japan's neighboring countries, I don't think Taiwan will be affected significantly since its industrial sector does not overlap much with Japan's," he told a media briefing in Taipei. Pu added that the falling yen may have a greater impact on South Korea's exports than Taiwan's in the near term, given that South Korea and Japan compete more directly across many sectors. Japan's currency hit 90.25 yen to the U.S. dollar on Monday, the weakest level since June 23, 2010. It was trading at about 80 to the greenback as recently as early November but has depreciated nearly 8 percent since the Liberal Democratic Party won a majority in Japan's parliament on Dec. 16. Japan's new prime minister, Shinzo Abe, has driven the yen's depreciation by calling for a higher inflation target and pushing a 20.2 trillion fiscal stimulus program. The new stimulus plan, announced on Jan. 11, was Japan's biggest since the 2008 financial crisis. (By Jeffrey Wu)


Updated : 2021-08-02 16:47 GMT+08:00