TAIPEI, Jan 22 Reuters Changes in policy promised by the newly inaugurated Trump administration foreshadow a future in which uncertainty will be the new normal for financial markets amid rising geopolitical risks, Taiwan39;s top financial regulator said on Wednesday.

Taiwan39;s main index jumped 28 in 2024, making it the best performer in Asia, Taiwan39;s Financial Supervisory Commission said, but the tech powerhouse island39;s economy faces uncertainly given its yawning trade surplus with the United States which could draw U.S. President Donald Trump39;s ire.

We will closely monitor the effects any Trump policies will have on the markets in Taiwan, commission chairman Peng Jinlung told reporters, adding geopolitical risks and Trump39;s policies would make market uncertainty the new normal.

This is true not only for Taiwan. Other global markets are also paying close attention, Peng said.

As he was sworn into office on Monday, Trump directed federal agencies to investigate persistent U.S. trade deficits and unfair trade practices and alleged currency manipulation by other countries.

Taiwan39;s trade surplus with the United States surged 83 last year, compared with 2023, with exports to the U.S. hitting a record high of 111.4 billion, driven by demand for hightech products such as semiconductors.

The United States is tradedependent Taiwan39;s second largest trading partner.

Reporting by Faith Hung; Editing by Ben Blanchard and Kate Mayberry

Source Reuters