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Tsai’s election victory set to bolster Taiwan’s buoyant markets – Bloomberg

The leader of Taiwan’s Democratic Progressive Party (DPP), Taiwanese President, Tsai Ing-wen is near to lock her second-term after the weekend election in Taiwan. Most polls confirm her gaining 57/58% votes, the highest number of votes for any candidate since Taiwan's first direct presidential election in 1996. She is beating China-friendly Kuomintang party’s leader Han Kuo-yu. Bloomberg came out with the probable market reaction of the event and sound optimistic for Taiwanese bourses at the open.

Key quotes

A winning run for Taiwan’s financial markets is set to be reinforced by Saturday’s landslide election victory for President Tsai Ing-wen.

Traders have their first chance to react to the victory of Tsai’s Democratic Progressive Party -- which advocates for Taiwan’s formal independence -- when markets open on Monday.

Likely beneficiaries include stocks related to biotechnology and wind energy, which gained ahead of Saturday’s election on expectations that government support will continue.

Tourism stocks may slide on concerns the result will chill cross-strait ties.

This week’s planned signing of an initial trade accord between China and the U.S. is also expected to give a boost.

FX implications

This could be another positive news for AUD/USD pair and may help it extend Friday’s gains. Even so, the immediate reaction to the headlines seems quiet as Aussie seesaw below 0.6900 mark by the time of writing amid the initial Asian session on Monday.

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