Flailing yen unlikely to hit the nation's exports: UBS
CNATAIPEI--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 Swissbank UBS AG said yesterday.
January 23, 2013, 12:01 am TWN
“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.