Feb. 14 (Bloomberg) -- Taiwan’s dollar weakened and government bonds advanced after Moody’s Investors Service cut the debt ratings of six European nations including Italy and Spain, damping demand for riskier assets.
Asian stocks declined after the credit assessor also lowered its outlook on the U.K. and France to negative. Taiwan’s exports slumped 16.8 percent in January from a year earlier, after rising 0.6 percent the previous month, the government reported last week.
“Europe’s downgrades are hurting risk-taking,” said Eric Hsing, a fixed-income trader at First Securities Inc. in Taipei. “It’s quite worrying that the austerity measures taken by these European countries will eventually hurt demand for Asia’s exports.”
The Taiwan dollar dropped 0.2 percent to NT$29.595 against its U.S. counterpart, according to Taipei Forex Inc. It touched NT$29.37 on Feb. 10, the strongest level since Sept. 13.
The yield on the government’s 1.25 percent notes due March 2022, the most-traded government securities, fell three basis points to 1.263 percent, prices from Gretai Securities Market show. The overnight money-market rate, which measures interbank funding availability, was little changed at 0.396 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Andrew Janes, Anil Varma
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