(Bloomberg) — Taiwan’s stocks and currency markets will likely play catch up on Friday as trading resumes following a two-day closure caused by Typhoon Krathon.
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The securities, currency and fixed income markets will reopen after last operating on Tuesday, according to Taiwan exchanges. This two-day stock market closure is only the third since 2016, and may delay cash dividend payments due to business disruptions.
The shutdown coincided with significant volatility in the region’s equities, driven by China’s policy shift. Asian shares rallied on Wednesday but erased much of those gains on Thursday. Taiwan Semiconductor Manufacturing Co.’s American depositary receipts climbed 2.2% on Wednesday.
The Taiwan dollar is likely to weaken against the US currency, which has strengthened as investors shift focus from the Federal Reserve’s rate-cut expectations to rising geopolitical tensions, according to Stephen Chiu, chief Asia foreign exchange and rates strategist at Bloomberg Intelligence.
Typhoon Krathon crossed the southwest coast of Taiwan on Thursday, forcing thousands to evacuate and leaving many without power. While the capital, Taipei, has been spared the worst of the storm, heavy rains are expected to continue through Friday morning in the city and neighboring New Taipei City.
–With assistance from Miaojung Lin.
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