Us Export Share Hits Record
Exports to the US increased 33.7% year on year, compared with 151.8% in January. The US accounted for 32% of total exports, the highest share in 36 years. Taiwan’s statistics office warned that a prolonged Middle East conflict could affect the export outlook. Risks named included disrupted shipping routes, higher fuel prices, pressure on corporate profits, and weaker consumer sentiment. Net foreign inflows into Taiwanese equities turned positive for the first time in two weeks, totalling USD 1.2bn. The article was produced using an AI tool and reviewed by an editor. Taiwan’s thirteenth straight month of double-digit export growth signals a durable trend, even if it missed the highest estimates. The continued global demand for high-end electronics and AI components is the clear engine here. The recent USD $1.2 billion in net foreign inflows confirms that international investors are positioning for further gains.Options Strategy And Hedging
The TAIEX has already climbed over 4% this month, pushing past the 21,000 mark, largely on the back of semiconductor stocks. We saw this AI-driven momentum build throughout 2025, and it appears to be accelerating now. Options on major tech ETFs therefore look attractive for capturing this continued upside. The most striking detail is that shipments to the US now account for the highest share of exports in 36 years. This tight link to the strong US economy provides a buffer against weakness elsewhere. We should consider long positions on the New Taiwan Dollar, as it has already strengthened past the 30.5 per USD level on this news. We must remain cautious of the warnings about conflict in the Middle East. With Brent crude already hovering around $95 a barrel, any escalation could quickly raise shipping and energy costs for Taiwanese companies. Buying call options on energy ETFs could serve as an effective hedge against our tech-focused positions. A prudent strategy would be to use bull call spreads on Taiwanese tech indices to profit from the momentum while limiting upfront cost. Looking back at the supply chain disruptions of 2025, we know how quickly shipping problems can rattle markets. Pairing these bullish trades with a small, out-of-the-money put on a broader Asian index provides a cheap hedge against geopolitical surprises. Create your live VT Markets account and start trading now.
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