00:01As a tentative calm holds between the U.S. and Iran, investors worldwide are watching closely.
00:07Taiwan's benchmark stock index, the TAI-X, edged up on Thursday as investors look to the start of peace talks
00:12and, hopefully, greater stability.
00:15Though market sentiment is recovering, the broader economy is still facing pressure.
00:35Goods made from petrochemicals, such as plastic bags, have been in short supply, with prices rising.
00:41Global prices of ethylene, a crucial material for plastics, have more than doubled since February.
00:47Taiwan's government has ordered the state-owned refiner to increase production by 30 percent in April
00:52and strengthen market supervision to stop companies taking unfair advantage.
01:02Pressure on the petrochemical supply chain is affected multiple industries,
01:06including pharmaceuticals and makers of medical devices,
01:09who are reporting raw material shortages and potential price hikes.
01:13It's the same for asphalt used by construction firms.
01:16Experts warn that if efforts to end the war are unsuccessful,
01:21these pressures could trigger a chain reaction,
01:23causing broader price increases along with an energy crisis.
01:43To keep inflation under control,
01:46Taiwan's Central Bank has hinted at the possible interest rate hike later this year,
01:50but how much that might help an economy as rely on unimported fuel as Taiwan's remains to be seen?
01:56Hangxi, NIT for Taiwan Plus.
Comments