MORE RELIABLY THAN ANY MARKET ANALYST, EVERY STEP and misstep in the undiplomatic dance between Taiwan and Beijing can foretell major moves in the Taipei stock exchange. Last week, when the Hong Kong press reported that Chinese Premier Li Peng would announce a timetable for reunification in a key speech, share prices tumbled 3.5%, and the Taiwan dollar took a beating. The next day, when Li made no mention of this schedule, prices rebounded on a wave of buying.
Such is the skittishness of investors in this period of strained relations between Taiwan and China. Confidence within Taiwan has been shaken,...
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