Markets

Taiwan Stock Market Expected To Remain Rangebound

(RTTNews) - The Taiwan stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had collected nearly 100 points or 0.8 percent. The Taiwan Stock Exchange now sits just beneath the 12,210-point plateau and now it's looking at a green light for Wednesday's trade.

The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The TSE finished barely lower on Tuesday following mixed performances from the financial shares and technology stocks.

For the day, the index eased 2.55 points or 0.02 percent to finish at 12,209.01 after trading between 12,143.91 and 12,228.31.

Among the actives, Cathay Financial lost 0.61 percent, while Mega Financial collected 0.47 percent, CTBC Financial sank 0.75 percent, Fubon Financial retreated 0.70 percent, First Financial fell 0.61 percent, Taiwan Semiconductor Manufacturing Company spiked 2.54 percent, United Microelectronics Corporation skidded 1.47 percent, Hon Hai Precision shed 0.46 percent, Largan Precision climbed 1.52 percent, Catcher Technology dropped 1.28 percent, MediaTek plunged 2.86 percent, Asia Cement and Taiwan Cement both rose 0.22 percent, Formosa Plastic was down 1.22 percent and E Sun Financial and Formosa Chemical were unchanged.

The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.

The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.

The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.

Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.

Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.

Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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