The Taiwan stock market headed right back up into positive territory again on Wednesday, one session after it had snapped the two-day winning streak in which it had collected more than 50 points or 0.7 percent. The Taiwan Stock Exchange finished just below the 7,670-point plateau, and now analysts are forecasting additional upside at the opening of trade on Thursday.
The global forecast for the Asian markets is broadly positive, keyed by positive economic data out of the United States and China. Oil stocks are expected to provide support, as are the steel and financial sectors. The European and U.S. markets finished sharply higher, and now the Asian bourses are expected to follow suit.
The TSE finished modestly higher on Wednesday, rallying on gains from the construction, paper, cement, textile and plastics sectors.
For the day, the index added 51.97 points or 0.68 percent to finish at 7,668.25 after trading between 7,625.72 and 7,679.43 on turnover of 106.59 billion Taiwan dollars. There were 2,515 gainers and 1,150 decliners, with 267 stocks finishing unchanged.
Among the decliners, Quanta plunged 6.48 percent and Hon Hai declined 3.98 percent.
Wall Street puts forth a very optimistic lead as stocks saw substantial gains to open the traditionally slow month of September on Wednesday, with data showing a pickup in manufacturing activity in both the U.S. and China recharging some hopes of a continued economic recovery. The rally was further fueled by a better than expected reading on resource-linked Australian GDP.
On the economic front, the Institute for Supply Management reported that its index of U.S. manufacturing activity rose to 56.3 in August from 55.5 in July, surprising economists who had expected the index to dip to 52.9.
Market sentiment was already upbeat ahead of the report, as data from Markit Economics showed that Chinese manufacturing activity expanded after a two-month contraction. The headline index came in at 51.9, up from 49.4 in July.
Early optimism was also generated by a report from the Australian Bureau of Statistics showing that Australian GDP rose by 1.2 percent in the second quarter compared to the 0.7 percent growth seen in the previous quarter. Economists had expected the economy to grow by 0.9 percent.
Meanwhile, the day's second-tier economic data from the U.S. saw little reaction. The Commerce Department said that construction spending fell by 1.0 percent in July, which was steeper than expected.
Also, Automatic Data Processing, Inc. (ADP) reported that private sector employment fell by 10,000 jobs in August, while economists had forecast an increase of 13,000 jobs.
On the corporate front, General Motors Co. and Ford Motor Co. (F) both reported drops in their U.S. vehicle sales for August compared to the same month last year, when sales were boosted by the U.S. government's "Cash for Clunkers" incentive program. GM reported a 25 percent drop in U.S. vehicle sales for August, while Ford reported an 11 percent decline.
The major averages saw further upside in late-session dealing, ending near their best levels of the day. The Dow shot up by 254.75 points or 2.5 percent to 10,269.47, the NASDAQ surged by 62.81 points or 3 percent to 2,176.84 and the S&P 500 advanced by 30.96 points or 3 percent to 1,080.29.
In economic news, business conditions across Taiwan's manufacturing sector deteriorated for the first time in 18 months in August, a survey by Markit Economics said on Wednesday. The headline HSBC manufacturing purchasing managers' index or PMI fell to 49.2 in August from 50.5 in July. A PMI reading above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.
Meanwhile, new orders placed with Taiwanese manufacturing firms declined for the second consecutive month and was sharper than the decline in July. New export orders also decreased for a second straight month, though the rate of reduction was modest and slightly faster than the previous month.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.