Taiwan's trade surplus widened from a five-month low of $5.77 billion in October to $9.80 billion in November. Exports rebounded with an increase of 3.8 percent on the year after falling 4.5 percent previously, while imports fell 14.8 after a previous decline of 12.3 percent. PMI survey data published last week showed Taiwan's manufacturing sector again contracted in November, as it has for more than a year.

Exports of electronic components fell 3.6 percent on the year in November after dropping 7.4 percent in October, while exports of information, communication and audio-video products recorded another month of very strong growth, up 74.0 percent after previously increasing 37.6 percent. Exports to mainland China and Hong Kong fell 6.3 percent on the year after a previous fall of 3.6 percent, while year-over-year growth in exports to the United States accelerated from 12.1 percent to 33.1 percent. Petroleum imports fell on the year after a previous increase while imports from mainland China and Hong Kong recorded modest growth.

The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. Trade balance values are calculated by deducting imports (cif) from exports (fob). The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.

Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of Taiwan’s high reliance on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.

This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.