Taiwanese exports for June released today registered at -30% on a year-over-year basis, the 10th consecutive negatively monthly reading. Exports to the mainland were down by almost 36% Y/Y, while coming in at the highest absolute dollar level since October of last year at $4.7 Billion USD. At 27% of the total, exports to the mainland are continuing to demonstrate resilience and have stabilized Taiwanese production levels overall -if not providing the surge that many bulls have been hoping for. Thus far, Chinese demand has not broadened significantly with consumer electronics and communications devices continuing to be the primary focus of Chinese buying.
This data continues to support our thesis on the Chinese recovery process. We will continue to closely follow export data from trading partners looking for marginal signs of change.