Commerzbank’s Charlie Lay and Moses Lim highlight that Taiwan’s January exports jumped 69.9% year-on-year, the strongest in 16 years, boosted by base effects and robust demand for advanced semiconductors used in AI. Export growth was broad-based across electronics, chemicals and base metals. USD/TWD fell 0.4% to 31.55 as exporters repatriated earnings and foreign equity inflows increased.

Record export growth supports Taiwanese Dollar

"January exports jumped more than expected by 69.9% yoy (Bloomberg consensus: 56.7%) vs 43.4% in December, the strongest recorded in 16 years."

"We should expect some payback in February and consider the January and February data together for a better read on the trend."

"The healthy project pipeline for AI-related data center development is expected to support electronic shipment growth this year."

"In FX, USD-TWD fell 0.4% to 31.55 yesterday, the first decline in four sessions. This was led by significant repatriation of earnings by exporters and increased foreign equity inflow."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)