March 15, 2011
Japan crisis likely to affect Taiwan's economy: analysts
TAIWAN: Taiwan's stock market fell more than 3 per cent and closed at its lowest level in more than three months on Monday, as analysts warn that the crisis in Japan is likely to hit Taiwan's economy - especially its technology sector.
"50 per cent of our exports to Japan consist of machinery and electronics. 80 per cent of which is consumer electronics products. So if Japan's consumer spending power weakens, it will affect Taiwan's exports as well as its economy," said Polaris Research Institute Strategist Yen Chen Hui.
There is also growing concern that Taiwan's semiconductor industry may be facing supply shortage from Japan.
The tourism sector is also predicted to feel the effects of Japan's crisis.
As Taiwan's second biggest source of visitors, arrivals from Japan last year exceeded 1.1 million. However, the number is now expected to fall considerably.
"After the quake and nuclear crisis, Japan's consumer spending is expected to decline - and that will affect their willingness to travel for leisure," said Mr Yen.
However, analysts also say the economic impact of Japan's quake on Taiwan is likely to be contained - believing that the booming mainland market will help to cushion the drop in Japanese tourists.
Experts say the impact should be limited to no more than 1 per cent of Taiwan's GDP.
http://www.channelnewsasia.com/stories/economicnews/view/1116705/1/.html
TAIWAN: Taiwan's stock market fell more than 3 per cent and closed at its lowest level in more than three months on Monday, as analysts warn that the crisis in Japan is likely to hit Taiwan's economy - especially its technology sector.
"50 per cent of our exports to Japan consist of machinery and electronics. 80 per cent of which is consumer electronics products. So if Japan's consumer spending power weakens, it will affect Taiwan's exports as well as its economy," said Polaris Research Institute Strategist Yen Chen Hui.
There is also growing concern that Taiwan's semiconductor industry may be facing supply shortage from Japan.
The tourism sector is also predicted to feel the effects of Japan's crisis.
As Taiwan's second biggest source of visitors, arrivals from Japan last year exceeded 1.1 million. However, the number is now expected to fall considerably.
"After the quake and nuclear crisis, Japan's consumer spending is expected to decline - and that will affect their willingness to travel for leisure," said Mr Yen.
However, analysts also say the economic impact of Japan's quake on Taiwan is likely to be contained - believing that the booming mainland market will help to cushion the drop in Japanese tourists.
Experts say the impact should be limited to no more than 1 per cent of Taiwan's GDP.
http://www.channelnewsasia.com/stories/economicnews/view/1116705/1/.html
