...Since the beginning of this year, the yen has fallen 14.72 percent against the U.S. dollar. The magnitude of the depreciation during the period of April 4-19, in particular, hit almost 7 percent on the back of more fund injections from the Bank of Japan (BOJ) to boost the economy.WantChinaTimes, the rabidly pro-Beijing rag, took a slightly different slant:
Acer Inc., the world's fourth largest PC vendor, agreed with the argument of little impact from the yen's weakness, saying as Japan is not the major competitor to Taiwan in the world's PC market, a weakening yen is unlikely to affect Taiwan's global standing in the business.
HSBC Securities analyst Lai Hui-chuan said as Japan is not a major supplier of components to Taiwan's PC manufacturers, a falling yen is unlikely to affect Taiwanese PC makers' operating costs.
Some of local light-emitting diode (LED) firms' global competitiveness, however, has been eroded as they have encountered competition directly from their Japanese rivals which are taking advantage of a falling currency, LEDinside analyst Chu Yu-chao said.
Export orders from Japan received by Taiwanese companies fell by 15.6% in March on an annual basis, the steepest decline among orders from Taiwan's major trading partners, according to statistics released by the country's Ministry of Economic Affairs on Monday.Some articles pointed out that major international firms had slowed orders, waiting to see how far the yen will fall. On the other hand, Taiwan's moribund auto market might get a kick since prices will fall if the yen falls; Mazda announced a cut in prices last month. Many Taiwan firms rely on parts from Japan, whose prices will fall, or they hold their debt in Japanese yen, meaning that it is easier to pay back since yen are now cheaper.
The weak yen affected mainly export orders for information and telecommunication products, as well as electronics products, which fell by 8.6% and 18.0%, respectively, in the first quarter of this year, compared with the same period last year, Lin said.
Hard to say what the overall effect on economic growth will be, but as long as the US and Europe remain committed to devastating their economies and the futures of their peoples through austerity, don't expect too much here in Taiwan.
- Government to promote the odious habit of tipping. What a bunch of feckless idiots.
- J Michael on the Huangkuang protest. The fourth paragraph is heartbreaking. The final one is excellent.
- Billions of bucks flee Chinese stocks as fears of slowdown mount; Taiwan industrial output fell 3.28% last month.
- Haha. Even the tepid capital gains tax is now being dialed back.
- Water rationing concerns remain
- First bird flu outside China found in Taiwan
- Healey at Huffpost: Chen Shui-bian is being killed in slow-motion state violence .
- Full court propaganda press by Cabinet in favor of the fourth nuke plant
- Fishing pact analysis from the Japan Times
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