Rebound Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market on Tuesday halted the five-day winning streak in which it had surged almost 700 points or 4 percent. The Taiwan Stock Exchange now rests just above the 17,225-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is positive on an improved 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 modestly lower on Tuesday as losses from the steel and plastic sectors were mitigated by support from the financials and a mixed picture from the technology and cement shares.

For the day, the index dropped 106.38 points or 0.61 percent to finish at 17,227.91 after trading between 17,164.92 and 17,401.59.

Among the actives, Cathay Financial rallied 2.15 percent, while Mega Financial climbed 1.03 percent, CTBC Financial spiked 3.35 percent, First Financial collected 0.53 percent, Fubon Financial soared 4.96 percent, E Sun Financial gained 0.57 percent, Taiwan Semiconductor Manufacturing Company retreated 1.69 percent, United Microelectronics Corporation shed 0.52 percent, Hon Hai Precision jumped 1.36 percent, Largan Precision declined 1.30 percent, Catcher Technology surged 4.02 percent, Delta Electronics dropped 0.81 percent, Novatek Microelectronics advanced 0.99 percent, Formosa Plastics fell 0.24 percent, Nan Ya Plastics sank 0.99 percent, Asia Cement slid 0.23 percent, Taiwan Cement improved 0.95 percent, China Steel shed 0.34 percent and MediaTek was unchanged.

The lead from Wall Street is solid as the major averages opened mixed on Tuesday but took off shortly thereafter, ending near session highs.

The Dow spiked 366.58 points or 1.06 percent to finish at 34,951.93, while the NASDAQ advanced 108.69 points or 0.76 percent to end at 14,353.64 and the S&P 500 gained 32.19 points or 0.71 percent to close at 4,554.98.

The rally on Wall Street followed the release of earnings news from financial giants like Bank of America (BAC), Morgan Stanley (MS), Bank of New York Mellon (BK) and PNC Financial Services (PNC), which all beat the street.

Traders also reacted positively to the release of separate reports showing a smaller than expected increase in retail sales and an unexpected decrease in industrial production.

While the reports led to some concerns about the strength of the economy, the data has added to recent optimism about the Federal Reserve nearing the end of its interest rate hiking cycle.

Crude oil prices moved higher on Tuesday for the first time in three days as the dollar slipped after soft data. West Texas Intermediate Crude oil futures for August ended higher by $1.60 or 2.2 percent at $75.75 a barrel.