The Taiwan stock market has demonstrated consistent upward momentum, recording gains for the past three sessions and accumulating over 800 points, a 3.4 percent increase. The Taiwan Stock Exchange (TSE) is currently positioned just above the 23,650-point mark, though it may face stagnation on Wednesday.
Globally, the forecast for Asian markets is pessimistic, driven by renewed apprehensions regarding interest rate prospects. European markets showed mixed results, while U.S. markets closed lower, a trend Asian markets are expected to follow.
On Tuesday, the TSE posted moderate gains, largely lifted by cement stocks, offset by declines in plastics and financial sectors, alongside a mixed performance from the technology sector. The index rose by 103.56 points, or 0.44 percent, closing at its daily low of 23,651.27, after peaking at 23,943.95.
Notable performances among active stocks included Mega Financial dropping 0.64 percent, First Financial decreasing 0.72 percent, and E Sun Financial losing 0.55 percent. Taiwan Semiconductor Manufacturing Company edged up 0.44 percent, while United Microelectronics Corporation fell 2.42 percent. Hon Hai Precision saw a rally of 2.98 percent, and Catcher Technology increased by 1.53 percent. In contrast, Largan Precision declined 0.53 percent, and Formosa Plastics and Nan Ya Plastics fell by 4.69 percent and 4.16 percent, respectively. MediaTek surged 4.56 percent, Delta Electronics rose 3.23 percent, and Novatek Microelectronics improved by 1.41 percent. Asia Cement had a slight gain of 0.25 percent, while Fubon Financial, CTBC Financial, and Cathay Financial remained unchanged.
U.S. markets delivered a bleak lead, with major indices starting Tuesday with slight gains but quickly reversing to finish sharply lower. The Dow dropped 178.20 points, or 0.42 percent, to close at 42,528.36, the NASDAQ fell 375.30 points, or 1.89 percent, to 19,489.68, and the S&P 500 decreased by 66.35 points, or 1.11 percent, to end at 5,909.03.
The downturn in stocks followed a significant uptick in treasury yields, which reached an eight-month high. Rising yields sparked concerns around interest rate futures, amplified by strong U.S. economic data.
According to the Institute for Supply Management, U.S. service sector activity surpassed expectations in December, with the prices index reaching a one-year peak, raising fears of persistent inflation. Additionally, the U.S. Labor Department reported an unexpected increase in November's job openings.
Oil prices saw an uptrend on Tuesday due to potential supply constraints following China's decision to cease imports from Iran and Russia, alongside unusually cold weather in the U.S. contributing to higher demand. West Texas Intermediate Crude oil futures for February rose by $0.69, or 0.94 percent, closing at $74.25 per barrel.
The material has been provided by InstaForex Company -
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