Taiwan Stock Market Set To Reverse Friday's Losses
(RTTNews) - The Taiwan stock market headed south again on Friday, one session after snapping the two-day slide in which it had slipped almost 50 points or 0.4 percent. The Taiwan Stock Exchange now sits just above the 12,660-point plateau although it figures to bounce higher again on Monday.
The global forecast for the Asian markets is upbeat on solid earnings from technology stocks and anticipation for new stimulus measures. The European markets were down on Friday and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The TSE finished modestly lower on Friday following losses from the financial shares and cement companies, while the technology stocks were mixed.
For the day, the index shed 58.10 points or 0.46 percent to finish at 12,664.80 after trading between 12,635.71 and 12,733.48.
Among the actives, Cathay Financial skidded 1.25 percent, while CTBC Financial retreated 1.27 percent, Fubon Financial dropped 1.07 percent, First Financial sank 0.84 percent, E Sun Financial fell 0.55 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.96 percent, United Microelectronics Corporation added 0.68 percent, Hon Hai Precision gained 0.51 percent, MediaTek rallied 2.64 percent, Asia Cement eased 0.12 percent, Taiwan Cement lost 0.77 percent and Formosa Plastic, Largan Precision, Catcher Technology and Mega Financial were unchanged.
After considerable volatility, the lead from Wall Street ended up to be positive thanks to a late-day surge on Friday, fueled by gains from the technology stocks.
The Dow added 114.62 points or 0.44 percent to finish at 26,428.32, while the NASDAQ soared 157.47 points or 1.49 percent to end at 10,745 and the S&P 500 rose 24.90 points or 0.77 percent to close at 3,271.12. For the week, The Dow eased 0.2 percent, the NASDAQ surged 3.7 percent and the S&P jumped 1.7 percent.
The higher close on Wall Street partly reflected a positive reaction to better than expected quarterly results from several leading technology companies, including Apple (AAPL), Amazon (AMZN) and Facebook (FB).
The upbeat tech earnings news overshadowed concerns about stalled negotiations over a new coronavirus stimulus package. Lawmakers appear at an impasse as the attempt to reach a compromise between a $1 trillion GOP relief proposal and the $3.4 trillion bill passed by the Democratic-controlled House in May.
In economic news, the Commerce Department said personal income slumped more than expected in June, although there was another substantial increase in personal spending. A separate report from the University of Michigan said consumer sentiment deteriorated more than expected in July.
Crude oil futures closed higher on Friday, buoyed by a report from the U.S. Energy Information Administration that said oil production fell sharply in May. West Texas Intermediate Crude oil futures for September ended up $0.35 or 0.9 percent at $40.27 a barrel.
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