(RTTNews) – The Taiwan stock market had moved higher in six straight sessions, surging more than 500 points or 4 percent along the way. The Taiwan Stock Exchange now rests just beneath the 12,750-point plateau and it’s expected to open in the green again on Thursday.
The global forecast for the Asian markets suggests a higher open on renewed stimulus hopes, although some of the overbought bourses may see profit taking as the day progresses. The European markets were mixed and the U.S. bourses were firmly higher and the Asian markets figure to split the difference.
The TSE finished modestly higher on Wednesday as gains from the technology stocks were limited by weakness from the financials and cement companies.
For the day, the index added 42.14 points or 0.33 percent to finish at 12,746.37 after trading between 12,619.81 and 12,774.36.
Among the actives, Cathay Financial eased 0.13 percent, while CTBC Financial sank 1.08 percent, Fubon Financial dropped 0.84 percent, First Financial slid 0.72 percent, E Sun Financial fell 0.58 percent, Taiwan Semiconductor Manufacturing Company added 0.80 percent, United Microelectronics Corporation soared 4.06 percent, Hon Hai Precision shed 0.51 percent, Catcher Technology climbed 1.13 percent, MediaTek surged 5.20 percent, Formosa Plastic lost 0.49 percent, Asia Cement retreated 1.44 percent, Taiwan Cement was down 0.60 percent and Largan Precision and Mega Financial were unchanged.
The lead from Wall Street is broadly positive as stocks opened higher on Monday and stayed that way throughout the session, offsetting losses from the previous day.
The Dow spiked 530.70 points or 1.91 percent to finish at 28,303.46, while the NASDAQ jumped 210.00 points or 1.88 percent to end at 11,364.60 and the S&P 500 rallied 58.49 points or 1.74 percent to close at 3,419.44.
The rebound on Wall Street comes after President Donald Trump indicated he would support individual stimulus measures after calling off negotiations over a broader relief package.
Trump’s tweet that he would end negotiations on a new fiscal stimulus package sent shivers through the markets on Tuesday and triggered the sell-off.
Crude oil prices drifted lower on Wednesday on stimulus concerns and after data showed an increase in crude stockpiles last week. West Texas Intermediate Crude oil futures for November ended up $1.45 or 3.7 percent at $40.67 a barrel.
Closer to home, Taiwan will release September numbers for consumer prices later today; in August, overall inflation was up 0.18 percent on month and down 0.33 percent on year, while wholesale prices dropped an annual 9.09 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.