Taiwan urges foreign firms not to speculate in T$

Taiwan's central bank is urging foreign investors to buy the island's stocks within a week with the T$100 billion ($3.1 billion) available in their Taiwan accounts, local media reported on Tuesday.

George Chou, Taiwan's vice central bank governor, told lawmakers that the authority had contacted custodian banks asking them to invest their money in local stocks, rather than parking their funds in bank deposits to wait for the Taiwan dollar to strengthen, the Chinese-language United Daily News said.

"We are watching foreign investor teams, asking them every day when they will enter the stock market," the paper quoted Chou as saying.

Central bank officials were not immediately available for comment.

Taiwan stocks, among the best-performing markets worldwide this year, have surged about 20 percent since hitting a recent low late in April on investor optimism of an influx of potential Chinese investments.

Foreign investors had wired more than T$200 billion to Taiwan since April, half of which is still in bank deposits, triggering concerns they would use the money to speculate on the Taiwan dollar, the paper said.

Around one hour into trade, the main TAIEX index rose 0.46 percent, hovering at nine-month highs.

The Taiwan dollar weakened 0.11 percent to trade at T$32.662 against the U.S. dollar, after closing at its highest level since December in the previous session.


TAIPEI, May 26 (Reuters)