Additional Support Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market bounced higher again on Monday, one session after snapping the four-day winning streak in which it had advanced almost 400 points or 2.4 percent. The Taiwan Stock Exchange now rests just above the 16,500-point plateau has positive lead for Tuesday's trade.

The global forecast for the Asian markets is upbeat on an improved outlook for the economy and the 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 slightly higher on Monday following gains from the financials, technology stocks and plastics.

For the day, the index rose 27.68 points or 0.17 percent to finish at 16,509.26 after trading between 16,498.86 and 16,582.96.

Among the actives, Cathay Financial jumped 2.02 percent, while Mega Financial strengthened 1.54 percent, First Financial collected 1.14 percent, E. Sun Financial added 0.62 percent, Taiwan Semiconductor Manufacturing Company added 0.55 percent, United Microelectronics soared 2.99 percent, MediaTek and Asia Cement both climbed 1.01 percent, Catcher Technology spiked 2.09 percent, Largan Precision and Fubon Financial both rallied 2.07 percent, Delta Electronics dropped 0.87 percent, Novatek Microelectronics rose 0.25 percent, Formosa Plastics gained 0.38 percent, Nan Ya Plastics improved 1.38 percent, Taiwan Cement rose 0.28 percent, China Steel increased 0.76 percent and Hon Hai Precision was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Monday, ebbed and flowed throughout the session but still ended solidly in positive territory.

The Dow jumped 213.08 points or 0.62 percent to finish at 34,559.98, while the NASDAQ spiked 114.48 points or 0.84 percent to close at 13,705.13 and the S&P 500 rallied 27.60 points or 0.63 percent to end at 4,433.31.

The higher open came after China put forth stimulus to ease market unrest and drive economic growth. Chinese authorities announced a slew of measures over the weekend to bolster the country's equity markets and fuel an increase in spending. The measures included a 50 percent reduction in stamp duty on stock trades and a slower pace of initial public offerings.

The markets also saw continued momentum after Fed Chair Jerome Powell expressed confidence in continued economic growth last week at Jackson Hole and reiterated the central bank's commitment to pull inflation back to the 2 percent target.

Crude oil prices edged higher on Monday on optimism that energy operations in the Gulf Coast of Florida may be affected by severe weather conditions this week. West Texas Intermediate Crude oil futures for October ended higher by $0.27 or 0.3 percent at $80.10 a barrel.