Taiwan is due to release economic data after the Chinese New Year holiday, including January export orders and industrial production. DBS Group Research expects both to record strong double-digit growth.<\/p>\n
The rise is linked to a low base from last year\u2019s Chinese New Year timing, plus continued global demand linked to AI. It also reflects inventory restocking across semiconductors and the wider ICT sector.<\/p>\n
DBS forecasts February CPI inflation above 1.5%, compared with 0.7% in January, due to higher food and services prices during the holiday period. Taiwan\u2019s national statistics agency has raised its 2026 GDP growth forecast to 7.7% and adjusted its 2026 CPI inflation forecast to 1.7%.<\/p>\n
The report notes the agency\u2019s updated 2026 projections broadly align with DBS expectations. The article says it was produced with the help of an AI tool and reviewed by an editor.<\/p>\n
Given the data expected in the coming weeks, we should anticipate a continued bullish environment for Taiwanese assets. The forecast for strong double-digit growth in export orders and industrial production points directly to the health of the island’s core technology sector. This is driven by sustained global AI demand and a widespread inventory restocking in semiconductors, a cycle we last saw gain this much momentum back in late 2024.<\/p>\n
This fundamental strength is already being reflected in key companies, with TSMC’s January 2026 revenues showing a notable 7.9% year-over-year increase, validating the AI-driven demand narrative. Globally, major chip buyers like Apple and Nvidia projected strong outlooks in their late 2025 earnings calls, which directly fuels the order books for Taiwan’s manufacturers. Therefore, we should view any market dips as potential buying opportunities for call options on the TAIEX index and major semiconductor-related stocks.<\/p>\n
The official upgrade of the 2026 GDP forecast to a robust 7.7% provides a strong tailwind for equity markets. This level of growth, the highest since the post-financial crisis rebound in 2010, suggests that current valuations may not fully price in the expected earnings growth. We should consider positioning through TAIEX futures, targeting new highs in the second quarter of 2026.<\/p>\n
On the currency front, the strong economic data is likely to put upward pressure on the New Taiwan Dollar. The USD\/TWD has already weakened from around 31.4 to 31.0 in February 2026, and this trend could accelerate. We should consider strategies that benefit from a stronger TWD, such as long positions in TWD futures or currency options.<\/p>\n
While the February CPI is expected to rise above 1.5%, this is largely due to temporary holiday effects and is unlikely to spook the central bank into immediate action. The government\u2019s full-year inflation forecast of a manageable 1.7% suggests that growth remains the primary focus. This stable inflation outlook, combined with high growth, creates a favorable environment for risk assets.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Taiwan to release post-holiday data; DBS expects double-digit growth, AI-driven demand, and higher February inflation.<\/p>\n","protected":false},"author":103,"featured_media":16987,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-50446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=50446"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50446\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16987"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=50446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=50446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=50446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}