Why Taiwan ETFs Are Falling While China ETFs Rally

While Chinese stocks rally on stimulus hopes, Taiwan ETFs are sliding. Lucas and Luna dig into why — Taiwan's export-dependent economy is getting squeezed by a stronger yen, weaker global demand for semiconductors outside of AI, and the unwinding of the yen carry trade. They look at the numbers: the Taiwan ETF, EWT, has dropped 4.5% in the past five days while China's FXI is up 2.1%. Lucas explains how the yen carry trade reversal is particularly painful for Taiwan, given its heavy electronics exports to Japan and competition with South Korean chipmakers. Luna asks whether this is a short-term hiccup or a structural shift, and they explore the role of the yuan's stability versus the yen's volatility. Specific concrete takeaway: Taiwan's export orders are down 3.2% year-over-year, and the island's central bank is caught between keeping rates low to support growth and defending the currency. The hosts also briefly note how the broader emerging market picture is bifurcated: commodity exporters like Brazil are holding up, while manufacturing-focused Asian economies are struggling. #Taiwan #China #EWT #FXI #YenCarryTrade #Semiconductors #ExportEconomy #TaiwanCentralBank #EmergingMarkets #Asia #CurrencyRisk #GlobalTrade #Economics #FexingoBusiness #BusinessPodcast #TheGlobalEconomyPodcast #TradeDeficits #ExportOrders Keep every episode free: buymeacoffee.com/fexingo