The Taiwan stock market has moved higher in two of three trading days since the end of the three-day slide in which it had retreated more than 440 points or 2.4 percent. The Taiwan Stock Exchange now rests just above the 17,500-point plateau although it may tick lower again on Tuesday.
The global forecast is mixed to lower, with crude oil prices and covid concerns expected to weigh on sentiment. The European markets were up and the U.S. bourses were mostly lower and the Asian markets are tipped to follow the latter lead.
The TSE finished sharply higher on Monday following gains from the financial shares, technology stocks and cement companies.
For the day, the index spiked 255.87 points or 1.48 percent to finish at the daily high of 17,503.28 after moving as low as 17,231.22.
Among the actives, Cathay Financial accelerated 2.76 percent, while Mega Financial slid 0.30 percent, CTBC Financial advanced 1.09 percent, Fubon Financial gathered 2.00 percent, First Financial collected 0.88 percent, E Sun Financial improved 1.51 percent, Taiwan Semiconductor Manufacturing Company jumped 1.72 percent, United Microelectronics Corporation shed 0.52 percent, Hon Hai Precision spiked 2.73 percent, Largan Precision fell 0.34 percent, Catcher Technology climbed 1.62 percent, MediaTek rallied 2.64 percent, Formosa Plastic soared 2.20 percent, Taiwan Cement gained 0.38 percent and Delta Electronics and Asia Cement were unchanged.
The lead from Wall Street is uninspired as the major averages opened firmly higher on Monday but faded as the session progressed – finally ending mixed and little changed.
The Dow shed 97.31 points or 0.28 percent to finish at 34,838.16, while the NASDAQ rose 8.39 points or 0.06 percent to end at 4,681.07 and the S&P 500 fell 8.10 points or 0.18 percent to close at 4,387.16.
The early strength on Wall Street reflected optimism about the outlook for the economy amid indications the Federal Reserve is not in a hurry to begin scaling back stimulus.
Positive sentiment may also have been generated after a bipartisan group of Senators unveiled a nearly $1 trillion infrastructure package.
However, buying interest waned after the Institute for Supply Management noted an unexpected slowdown in the pace of growth in U.S. manufacturing activity in July. Also, the Commerce Department said construction spending crept up by less than expected in June.
Crude oil prices fell sharply Monday due to rising concerns about the outlook for energy demand amid a surge in the delta variant of the coronavirus in several countries. West Texas Intermediate Crude oil futures for September plunged $2.69 or 3.6 percent at $71.26 a barrel.
Market Analysis
Taiwan Stock Market May Spin Its Wheels On Tuesday
2021-08-03 00:30:12
