Rebound expected for Taiwan’s stock market
(RTTNews) – Taiwan’s stock market headed south again on Thursday, a day after halting the two-day slide in which it stumbled nearly 150 points or 1.1%. The Taiwan Stock Exchange is now just above the plateau of 14,890 points, although it should rebound again on Friday.
The global forecast for Asian markets is bullish on optimism about the outlook for interest rates. European markets were mostly higher and US stock markets were solidly in the green and Asian markets should follow the latter lead.
The TSE ended slightly lower on Thursday after mixed performances from financials, technology stocks and cement companies.
For the day, the index fell 29.69 points or 0.20% to end at 14,891.90 after trading between 14,849.94 and 15,031.99.
Among assets, Cathay Financial climbed 1.22%, Mega Financial strengthened 1.28%, CTBC Financial raised 1.09%, Fubon Financial rose 1.81%, First Financial improved 1.52% , E Sun Financial fell 5.79%, Taiwan Semiconductor Manufacturing Company fell 0.20%, United Microelectronics Corporation fell 1.65%, Hon Hai Precision gained 0.46%, Largan Precision jumped 1.79%, Catcher Technology fell 0.87%, MediaTek gained 0.74%, Delta Electronics climbed 3.15%, Formosa Plastics rose 1.00%, Nan Ya Plastics rose 1.00% .06%, Asia Cement plunged 8.89% and Taiwan Cement rose 0.92%.
Wall Street’s lead is firm as leading averages shook off early weakness on Thursday, quickly moving into positive territory and accelerating towards the close.
The Dow Jones jumped 332.04 points or 1.03% to end at 32,529.63, while the NASDAQ climbed 130.17 points or 1.08% to end at 12,162.59 and the S&P 500 improved 48.82 points or 1.21% to close at 4,072.43.
Wall Street’s early weakness followed the release of a Commerce Department report showing a continued contraction in US economic activity in the second quarter of 2022, pushing the US into a technical recession.
However, economists doubt the economy is truly in recession, citing other indicators pointing to continued growth and persistent labor market strength.
The data may have further added to optimism that the Federal Reserve will slow the pace of its interest rate hikes in future meetings, helping Wall Street recover.
Crude oil futures stabilized on Thursday as worries about the outlook for energy demand due to slowing global economic growth weighed on prices. West Texas Intermediate crude oil futures for September ended down $0.84 or 0.9% at $96.42 a barrel.
Closer to home, Taiwan will provide an advance estimate of second-quarter gross domestic product later today, with forecasts suggesting a 3.1% year-on-year increase from 3.14% in the previous three months.
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