While nations grapple with the effects of a faltering U.S. dollar, the meteoric rise in oil prices and turmoil in the credit markets, one economy is worried about another leading indicator: New York Yankees pitcher Chien-Ming Wang's performance last night against the Boston Red Sox.
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A Sports Illustrated feature on the 28-year- old Taiwanese-born right-hander highlights a correlation between Wang's pitching line and fluctuations in prices on the Taiwan Stock Exchange. According to SI, a study conducted by Taiwanese economists (initially published in the Taiwanese business journal, Money Weekly) attributed a 25% index rise last summer to Wang's strong June and July for the Yankees.
Wang, who has won more games than any pitcher in Major League Baseball over the last two seasons, is reportedly more revered in his country than President Chen Shui-Bian. And consumers in the world's 19th-largest economy seem to spend accordingly.
"We absolutely believe it to be true," press director of the Taipei Economic and Cultural Office, Ben Shao, told SI. "Psychologically, how [Wang] does has a huge effect on the Taiwanese people. If he does well, people are in a good mood, and they go out and spend money. If he doesn't, you walk around and you can see people depressed. It's a very personal matter to the Taiwanese people."
The theory may seem a little bit absurd, but as SI points out, the country's stock index was up roughly 6% through Monday since Wang's first start this season on April 1. Entering Wednesday's start against the Red Sox, Wang was 3-0 for the season, and nearly hurled a no-hitter against the Yankees' division rival last Friday.
But after allowing eight runs in just four innings last night against the Red Sox, will Taiwan's bullish streak reverse itself this week?
We'll see. So far, it appears the Taiwanese people might be a little more patient than Yankees fans; the TSEC closed up 0.27% on Thursday. - John Blakeley
