Taiwan February exports miss expectations; caution on US trade policy

TAIPEI, March 9 (Reuters) - Taiwan's exports rose less than expected in February, slowing from January when monthly growth was the fastest in 16 years.

Exports grew 20.6% year-on-year to $49.8 billion, compared to 28.8% in a Reuters poll and 69.9% in January, the finance ministry said on Monday. The export performance continued a streak of 28 consecutive monthly year-on-year gains.

Here are some details on the data:

• Artificial intelligence (AI) and cloud business demand was strong, but there were fewer working days given the week-long Lunar New Year holiday that took place in February.

• Taiwan companies such as TSMC 2330.TW, TSM.N, the world's largest maker of advanced chips used to power AI applications, are major suppliers to Nvidia NVDA.O, Apple AAPL.O and other leading tech companies.

• Demand remained strong and export momentum should extend into the first quarter.

• However, U.S. trade policy and geopolitical risks should be closely watched.

• For March, the ministry expects exports to rise between 29% and 35% from a year earlier.

• In February, Taiwan's exports to the United States rose 33.7% from a year earlier to $15.74 billion, while exports to China climbed 3.3%.

• Exports of electronic components jumped 24.6% to $17.979 billion.

• Imports rose only 6.8% to $37.08 billion, underperforming economists' forecasts of an increase of 23.7%.

The ministry's web site is at http://www.mof.gov.tw