Taiwan Stock Market Tipped To Open In The Green

The Taiwan stock market on Wednesday snapped the two-day winning streak in which it had picked up almost 140 points or 1 percent. The Taiwan Stock Exchange now rests just shy of the 14,200-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is positive on easing concerns over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The TSE finished slightly lower on Wednesday following losses from the plastics and mixed performances from the financials and technology shares.

For the day, the index dipped 24.99 points or 0.18 percent to finish at 14,199.13 after trading between 14,177.97 and 14,257.45.

Among the actives, Mega Financial fell 0.33 percent, while CTBC Financial collected 0.90 percent, Fubon Financial jumped 1.42 percent, First Financial eased 0.19 percent, E Sun Financial slumped 0.83 percent, Taiwan Semiconductor Manufacturing Company sank 0.77 percent, United Microelectronics Corporation dropped 0.85 percent, Hon Hai Precision skidded 1.01 percent, Largan Precision strengthened 1.20 percent, Catcher Technology added 0.59 percent, MediaTek retreated 1.24 percent, Delta Electronics shed 0.53 percent, Novatek Microelectronics rose 0.30 percent, Formosa Plastics slipped 0.46 percent, Nan Ya Plastics lost 0.56 percent, Asia Cement gained 0.37 percent and Taiwan Cement and Cathay Financial were unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Wednesday, moved firmly higher midday and ended solidly in the green.

The Dow jumped 133.40 points or 0.40 percent to finish at 33,269.77, while the NASDAQ climbed 71.78 points or 0.69 percent to close at 10,458.76 and the S&P 500 gained 28.83 points or 0.75 percent to end at 3,852.97.

The volatility on the day came as traders awaited and subsequently reacted to the minutes of the Federal Reserve’s December monetary policy, which reinforced expectations the central bank is likely to continuing raising interest rates.

The minutes reiterated that officials continue to anticipate that ongoing rate increases would be appropriate – although perhaps slower – to achieve the Fed’s dual objectives of maximum employment and price stability.

On the U.S. economic front, the Institute for Supply Management released a report showing U.S. manufacturing activity contracted at a slightly faster rate in the month of December.

Oil prices fell on Wednesday, extending recent losses as worries about energy demand amid rising fears of a global recession continued to weigh on the commodity. West Texas Intermediate Crude oil futures for February ended down $4.09 or 5.3 percent at $72.84 a barrel.

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