Rebound Predicted For Taiwan Stock Market
(RTTNews) - Ahead of the long weekend for the National Day holiday, the Taiwan stock market had halted the three-day winning streak in which it had gathered almost 140 points or 1.4 percent. The Taiwan Stock Exchange now rests just beneath the 10,890-point plateau although it's expected to bounce higher again on Monday.
The global forecast for the Asian markets is upbeat on growing optimism over an end to the trade dispute between the United States and China. The European and U.S. markets were sharply higher on Friday and the Asian markets are expected to open in similar fashion.
The TSE finished sharply lower on Wednesday following losses from the financial shares, technology stocks and cement companies.
For the day, the index tumbled 127.35 points or 1.16 percent to finish at the daily low of 10.889.96 after peaking at 10,989.39.
Among the actives, Cathay Financial added 0.12 percent, while Mega Financial fell 0.34 percent, CTBC Financial lost 0.72 percent, Fubon Financial declined 0.90 percent, First Financial was down 1.13 percent, E Sun Financial eased 0.19 percent, Taiwan Semiconductor Manufacturing Company skidded 1.57 percent, United Microelectronics Corporation dropped 1.50 percent, Hon Hai Precision sank 1.49 percent, Largan Precision shed 0.45 percent, Catcher Technology retreated 3.08 percent, MediaTek plunged 3.25 percent, Asia Cement lost 1.28 percent and Taiwan Cement slid 0.63 percent.
The lead from Wall Street is broadly positive as stocks moved sharply higher on Friday, extending recent gains.
The Dow jumped 319.92 points or 1.21 percent to finish at 26,816.59, while the NASDAQ spiked 106.26 points or 1.34 percent to 8,057.04 and the S&P 500 climbed 32.14 points or 1.09 percent to 2,970.27. For the week, the Dow and NASDAQ rose 0.9 percent, while the S&P added 0.6 percent.
The rally on Wall Street came as traders expressed continued optimism about U.S.-China trade talks, with President Donald Trump announcing late in the trading day that the two economic powers have reached a "very substantial phase one deal."
Trump said the agreement would take about three weeks to write and would likely be signed by both sides by the Asia-Pacific Economic Cooperation summit in Chile in November.
Crude oil prices rose sharply on Friday on supply concerns after an Iranian oil tanker exploded in the Red Sea after being hit by missiles launched from Saudi Arabia. West Texas Intermediate crude oil futures for November ended up $1.15 or 2.2 percent at $54.70 a barrel.