Win Streak May Continue For Taiwan Stock Market

The Taiwan stock market has finished higher in three straight sessions, advancing more than 560 points or 2.8 percent in that span. The Taiwan Stock Exchange now sits just beneath the 19,500-point plateau and it’s likely to see additional support again on Thursday.

The global forecast for the Asian markets suggests mild upside on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The TSE finished modestly higher on Wednesday following gains from the financial shares and technology stocks.

For the day, the index gained 112.53 points or 0.58 percent to finish at 19,499.45 after trading between 19,246.30 and 19,532.30.

Among the actives, Cathay Financial fell 0.22 percent, while Mega Financial climbed 0.90 percent, CTBC Financial rallied 1.20 percent, First Financial increased 0.74 percent, E Sun Financial collected 0.40 percent, Taiwan Semiconductor Manufacturing Company added 0.68 percent, United Microelectronics Corporation advanced 0.92 percent, Largan Precision improved 0.78 percent, Catcher Technology gained 0.50 percent, MediaTek surged 3.03 percent, Delta Electronics strengthened 1.55 percent, Novatek Microelectronics perked 0.17 percent, Formosa Plastics was up 0.14 percent, Nan Ya Plastics skidded 1.05 percent, Asia Cement eased 0.12 percent and Taiwan Cement, China Steel, Hon Hai Precision and Fubon Financial were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded midday but rallied late to finish modestly in the green.

The Dow added 75.86 points or 0.20 percent to finish at 38,661.05, while the NASDAQ advanced 91.96 points or 0.58 percent to close at 16,031.54 and the S&P 500 rose 26.11 points or 0.51 percent to end at 5,104.76.

The rebound on Wall Street reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell.

Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at “some point this year,” although he reiterated officials need “greater confidence” inflation is moving sustainably toward 2 percent.

In economic news, payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in February.

Crude oil futures settled higher on Wednesday after data showed large declines in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25 percent at $79.13 a barrel.

Closer to home, Taiwan will see February results for consumer prices later today; in January, inflation was up 0.21 percent on month and 1.79 percent on year.