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Taiwan Stock Market Likely To Reverse Wednesday's Losses

The Taiwan stock market on Wednesday snapped the three-day winning streak in which it had gathered more than 160 points or 1.5 percent. The Taiwan Stock Exchange now rests just above the 10,965-point plateau although it figures to rebound on Thursday.

The global forecast for the Asian markets is upbeat on easing concerns of a trade war. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The TSE finished modestly lower on Wednesday following mixed performances from the financial shares and the technology stocks.

For the day, the index fell 29.60 points or 0.27 percent to finish at 10,965.79 after trading between 10,956.00 and 10,992.29 on turnover of 122.49 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company shed 0.21 percent, while Hon Hai Precision fell 0.60 percent, AsusTek Computer slid 0.95 percent, Largan Precision added 0.48 percent, Formosa Plastics lost 0.91 percent, Chunghwa Telecom retreated 0.47 percent, Fubon Financial eased 0.20 percent, Mega Financial collected 0.37 percent, China Steel picked up 0.20 percent and United Microelectronics Corporation, Catcher Technology, Cathay Financial and CTBC Financial were unchanged.

The lead from Wall Street is firm as stocks showed a strong move to the upside on Wednesday after reports that President Donald Trump secured trade concessions from Europe.

The Dow rose 172.16 points or 0.68 percent to 25,414.10, while the NASDAQ jumped 91.47 points or 1.17 percent to 7,932.24 and the S&P 500 advanced 25.67 points or 0.91 percent to 2,846.07.

The strength on Wall Street followed reports that the European Union delegation meeting with Trump agreed to consider changes in its trade policies in an effort to ease relations with the U.S.

The report offset earlier negative sentiment from disappointing guidance from General Motors (GM) and Boeing (BA).

In economic news, the Commerce Department reported showing a bigger than expected pullback in new home sales in June.

Crude oil prices rose Wednesday, extending Tuesday's gains following a larger than expected decline in U.S. crude inventories last week. Crude oil futures for September delivery ended at $69.30 a barrel on the New York Mercantile Exchange, gaining $0.78 or 1.13 percent.

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Market Analysis

A busy week for economics saw the release of first quarter growth figures for the U.S. economy and the interest rate decision in Japan. Read our stories to find out why the GDP data damped market sentiment in the U.S. and what were the signals given out by the Bank of Japan. Other news this week included new home sales data and jobless claims figures from the U.S., and the latest purchasing managers' survey results for the Eurozone.

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