The Taiwan stock market has experienced an upward trend in two out of the last three trading sessions, following a two-day decline which saw it lose nearly 360 points or 1.5%. The Taiwan Stock Exchange (TSE) now stands slightly below the 23,040-point threshold and indications suggest it might see an uplift on Tuesday. The forecast for the Asian markets is varied to higher, with significant backing anticipated from technology companies. Meanwhile, European markets experienced a downturn, with US markets offering a mixed response, potentially setting a precedent for Asian markets to mirror this mixed sentiment.
On Monday, the TSE marked a modest gain as increases in financial stocks counterbalanced declines in the plastics and cement sectors, alongside a mixed performance from technology stocks. The index edged up by 19.42 points or 0.08% to close at 23,039.90, fluctuating between 22,959.91 and 23,264.40 throughout the day. For individual stocks, Cathay Financial improved by 0.86%, Mega Financial edged up 0.13%, CTBC Financial gained 0.76%, and Fubon Financial rose by 0.11%. Taiwan Semiconductor Manufacturing Company posted a solid gain of 1.88%, whereas Hon Hai Precision fell by 2.41%. Largan Precision dropped 0.79%, Catcher Technology declined 1.66%, MediaTek fell 1.77%, and Delta Electronics rose 0.71%. Novatek Microelectronics saw a decline of 1.95%, Formosa Plastics dropped 2.37%, Nan Ya Plastics fell 1.19%, and Asia Cement saw a significant drop of 2.57%. United Microelectronics Corporation and E Sun Financial remained unchanged.
The sentiment from Wall Street is cautiously bullish, with major indices starting mixed on Monday and closing in a similar pattern.
The Dow Jones Industrial Average dropped by 110.58 points or 0.25% to settle at 43,717.48, while the NASDAQ witnessed a significant surge of 247.17 points or 1.24% to end at a record 20,173.89. The S&P 500 climbed 22.99 points or 0.38% to finish at 6,074.08.
The overall strength in Wall Street was attributed to optimism concerning the interest rate outlook ahead of the Federal Reserve's anticipated monetary policy decision. It is widely expected that the Fed will continue to cut interest rates, with CME Group's FedWatch Tool indicating a 99.1% probability of a 25 basis point rate cut.
The NASDAQ's rise was buoyed by notable strength in semiconductor stocks, with the Philadelphia Semiconductor Index advancing by 2.1%. Networking stocks also showed significant gains, contributing to the recent upward trend by pushing the NYSE Arca Networking Index up by 2.0% to a new record high.
Despite this, buying interest was tempered by concerns related to persistent inflation, sparking worries that the Fed might slow down rate cuts next year relative to earlier expectations.
In terms of U.S. economic developments, the Federal Reserve Bank of New York unveiled a report showing a marked reduction in its index of regional manufacturing activity for December.
Crude oil prices saw a decline on Monday due to apprehensions regarding demand following disappointing economic data from China and potential tariff threats. West Texas Intermediate Crude oil futures for January settled down $0.58 at $70.71 per barrel.
The material has been provided by InstaForex Company -
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