The Taiwan stock market on Monday snapped the two-day slide in which it had stumbled more than 90 points or 0.9 percent. The Taiwan Stock Exchange now rests just above the 10,530-point plateau and it's expected to add to its winnings on Tuesday.
The global forecast for the Asian markets is cautiously optimistic ahead of the FOMC's rate decision on Wednesday. The European and U.S. bourses were slightly higher and the Asian markets are tipped to follow that lead.
The TSE finished slightly higher on Monday following gains from the cement stocks and mixed performances from the financials and technology companies.
For the day, the index gained 5.87 points or 0.06 percent to finish at 10,530.54 after trading between 10,474.19 and 10,562.97 on turnover of 87.80 billion Taiwan dollars.
Among the actives, Cathay Financial advanced 0.85 percent, while Mega Financial collected 0.16 percent, CTBC Financial dipped 0.23 percent, Fubon Financial climbed 1.26 percent, Taiwan Semiconductor Manufacturing Company skidded 1.27 percent, United Microelectronics Corporation shed 0.36 percent, Hon Hai Precision jumped 1.73 percent, Largan Precision spiked 2.89 percent, AsusTek Computer added 0.69 percent, Catcher Technology dipped 0.23 percent, MediaTek tumbled 2.12 percent, Asia Cement rose 0.86 percent, Taiwan Cement perked 1.71 percent, Formosa Plastic gained 0.45 percent and Formosa Chemical, First Financial and Taishin Financial were unchanged.
The lead from Wall Street offers mild upside as stocks opened higher on Monday, gave ground in the afternoon but still finished in the green.
The Dow added 22.92 points or 0.09 percent to 26,112.53, while the NASDAQ gained 48.37 points or 0.62 percent to 7,845.02 and the S&P 500 rose 2.69 points or 0.09 percent to 2,889.67.
The strength on Wall Street reflected optimism the Fed will signal a near-term interest rate cut when announcing its monetary policy decision on Wednesday. Many expect the Fed to leave interest rates unchanged but alter its accompanying statement to possibly cutting rates in the near future.
Disappointing economic data reinforced optimism about a potential rate cut, as the New York Fed reported a sharp downward turn in regional manufacturing activity in June. Also, the National Association of Home Builders noted a pullback in homebuilder confidence in June.
Crude oil prices drifted lower on Monday amid renewed concerns about energy demand prospects due to economic slowdown in China. West Texas Intermediate Crude oil futures for July ended down $0.58 or 1.1 percent at $51.93 a barrel.
For comments and feedback contact: editorial@rttnews.com
Market Analysis