Trump-Xi summit keeps Taiwan on edge over US position
Ahead of the Trump-Xi summit in Beijing, the Taiwanese government is analysing the impact of a possible nuance in Washington's 'one China policy' wording. Taipei's foreign ministry called for the preservation of existing 'red lines.' The TWSE benchmark slipped 1.1 percent.
Taiwanese Foreign Minister Lin Chia-lung told reporters that Taipei was lobbying for balanced language in the talks. Nikkei Asia reported that the US delegation's agenda included a possible joint statement on Beijing's 'one China' formulation. The Trump administration has not commented officially.
Major chipmakers including TSMC, Hua Hua and UMC have activated a five-day inventory reserve plan in case of further tension in the Taiwan Strait. Clients such as Nvidia and Apple have warned their supply chain teams about possible disruption on Taiwanese production lines.
The TWSE benchmark closed down 1.1 percent; TSMC's American depositary receipts fell 2.2 percent in New York. The Taiwan dollar rose sharply to 31.9 as risk positions were unwound. JPMorgan expects Taiwan's defence spending to approach four percent of GDP by 2027.
More from Asia
Philippine Congress moves to impeach Vice President Sara Duterte again
The Philippine House of Representatives is taking up a second impeachment complaint against Vice President Sara Duterte. The charges focus on unaccounted confidential funds. The peso slid about 0.8 percent against the dollar as proceedings began.
Explosion at China fireworks factory kills 26 people
An explosion at a fireworks factory in Hunan province, China, killed 26 people and injured 61, according to state media reports.
China scraps tariffs for all but one African nation
China announced it has scrapped tariffs for almost all African nations. This move boosts China's soft power in African states, but may also deepen economic inequalities.