Bloomberg News

Taiwan Bonds Advance on Speculation Ma Will Win Jan. 14 Election

January 12, 2012

Jan. 12 (Bloomberg) -- Taiwan’s government bonds gained as speculation the incumbent Kuomintang party will win the election on Jan. 14 fueled demand for the island’s assets. The local dollar touched a 10-week high.

Global funds bought $569 million more Taiwanese stocks than they sold this week, according to exchange data. Tsai Ing-Wen, chairwoman of the opposition Democratic Progressive Party, is running against President Ma Ying-jeou. Relations with China have warmed since Ma took office in 2008.

“Foreign investors are optimistic that the Kuomintang will win,” said Eric Hsing, a fixed-income trader at First Securities Inc. in Taipei.

The yield on the 1 percent notes due January 2017 fell one basis point, or 0.01 percentage point, to 0.957 percent, prices from Gretai Securities Market show.

The Taiwan dollar closed little changed at NT$30.002 against its U.S. counterpart, according to Taipei Forex Inc. It reached NT$29.880 earlier, the strongest level since Nov. 1.

The overnight money-market rate, which measures interbank funding availability, was little changed at 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.

--Editors: Andrew Janes, Anil Varma

To contact the reporter on this story: Andrea Wong in Taipei at awong268@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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