Taiwan Stock Market Tipped To Open In The Green

The Taiwan stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day slide in which it had slumped more than 250 points or 1.7 percent. The Taiwan Stock Exchange now rests just beneath the 14,940-point plateau although it’s likely to see renewed strength again on Thursday.

The global forecast for the Asian markets is upbeat thanks to easing inflation concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The TSE finished modestly lower on Wednesday as losses from the technology stocks were mitigated by gains from the financials and plastics.

For the day, the index lost 111.26 points or 0.74 percent to finish at 14,939.02 after trading between 14,890.55 and 14,982.33.

Among the actives, Cathay Financial collected 0.65 percent, while Mega Financial improved 0.81 percent, CTBC Financial climbed 1.07 percent, Fubon Financial added 0.52 percent, First Financial strengthened 1.54 percent, E Sun Financial rose 0.18 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.96 percent, United Microelectronics Corporation surrendered 1.83 percent, Hon Hai Precision advanced 0.92 percent, Largan Precision skidded 1.18 percent, Catcher Technology tanked 2.23 percent, MediaTek plunged 3.75 percent, Delta Electronics spiked 2.64 percent, Formosa Plastics perked 0.44 percent, Nan Ya Plastics gained 1.04 percent, Asia Cement shed 0.61 percent and Taiwan Cement was unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Wednesday and stayed that way throughout the day, ending at three-month closing highs.

The Dow spiked 535.10 points or 1.63 percent to finish at 33,309.51, while the NASDAQ surged 360.88 points or 2.89 percent to end at 12,854.80 and the S&P 500 jumped 87.77 points or 2.13 percent to close at 4,210.24.

The rally on Wall Street came after the Labor Department released a report showing U.S. consumer prices unexpectedly came in flat in the month of July.

The tamer than expected inflation data has led to speculation that the Federal Reserve may slow the pace of interest rate hikes at its September meeting.

Crude oil prices climbed higher on Wednesday, lifted by data showing a bigger-than-expected drop in gasoline inventories in the U.S. last week. A weak dollar and increased demand for gasoline also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures ended higher by $1.43 or 1.6 percent at $91.93 a barrel.