Taiwan Stock Market May Extend Wednesday's Gains

(RTTNews) - The Taiwan stock market rebounded on Wednesday, one day after snapping the two-day winning streak in which it had collected more than 75 points or 0.5 percent. The Taiwan Stock Exchange now sits just beneath the 16,040-point plateau and it's expected to see additional support on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.

The TSE finished modestly higher on Wednesday following mixed performances from the financial shares, technology stocks and plastics companies.

For the day, the index gained 37.29 points or 0.23 percent to finish at 16,038.56 after trading between 15,978.26 and 16,099.03.

Among the actives, Cathay Financial advanced 0.91 percent, while Mega Financial eased 0.14 percent, First Financial rallied 0.97 percent, Fubon Financial was down 0.17 percent, Taiwan Semiconductor Manufacturing Company dipped 0.19 percent, United Microelectronics Corporation jumped 1.73 percent, Hon Hai Precision dropped 0.93 percent, Largan Precision fell 0.24 percent, Catcher Technology slid 0.28 percent, MediaTek added 0.48 percent, Delta Electronics retreated 1.20 percent, Novatek Microelectronics soared 3.41 percent, Formosa Plastics dipped 0.26 percent, Nan Ya Plastics gained 0.32 percent, Taiwan Cement lost 0.47 percent, China Steel sank 0.41 percent and CTBC Financial, E Sun Financial and Asia Cement were unchanged.

The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.

The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.

The strength on Wall Street came as stocks reacted positively to the Federal Reserve's widely expected decision to leave interest rates unchanged.

The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.

In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.

Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.