The Taiwan stock market has moved higher now in consecutive trading days, surging more than 270 points or 3.9 percent along the way. The Taiwan Stock Exchange closed just above the 7,340-point plateau, and now traders are looking for another firm start when the market opens on Wednesday.
The global forecast for the Asian markets is cautiously optimistic following another mixed bag of news out of Europe. Spurring the bulls, Greece provided EUR 18 billion in cash boost to its four largest banks as part of the recapitalization process, the Finance Ministry said. However, likely capping the upside is the latest news from Spain, which saw its credit rating downgraded again by Egan Jones, to BB- from B. Profit taking from Tuesday's rallies also may limit the gains. The European and U.S. markets were higher, and the Asian bourses are expected to open in similar fashion.
The TSE finished sharply higher on Tuesday following gains from the construction, cement, food, finance, technology, textile, paper and plastic sectors.
For the day, the index surged 206.29 points or 2.89 percent to finish at 7,342.29 after trading between 7,349.85 and 7,178.67 on turnover of 93.10 billion Taiwan dollars. There were 3,944 gainers and 1,021 decliners, with 102 stocks finishing unchanged.
Among the gainers, Largan Precision spiked 4.67 percent, while HTC Corp climbed 4.10 percent, TPK Holding surged 6.08 percent and Wowprime Corp jumped 1.58 percent.
The lead from Wall Street is broadly positive as stocks moved higher on Tuesday afternoon, after considerable volatility in the morning.
The gains extended the upward move seen last week, which ended a three-week losing streak. The early volatility followed mixed news out of Europe as well as relatively light trading activity after the holiday weekend.
The latest news out of Greece contributed to early strength, with polls showing an increase in support for the political parties that back the austerity measures required for the debt-plagued nation to receive international bailout funds. While the anti-bailout Syriza party could still come in second, the pro-bailout New Democracy party could win enough seats to form a coalition government with the socialist Pasok party; elections are June 17.
However, stocks pulled back rather sharply following news that Egan Jones downgraded Spain's credit rating to BB- from B. The news contributed to a sharp drop by the value of the euro, which traded at $1.25 versus the U.S. dollar at the close of trading on Wall Street.
The markets also likely benefited from speculation that China will announce further stimulus measures, which helped to overshadow a report from the Conference Board showing a notable deterioration in U.S. consumer confidence in May.
The major averages ended the day firmly in positive territory but off their early highs as the Dow advanced 125.86 points or 1 percent to finish at 12,580.69, while the NASDAQ jumped 33.46 points or 1.2 percent to end at 2,870.99 and the S&P 500 climbed 14.60 points or 1.1 percent to 1,332.42.
by RTT Staff Writer
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