Asian Economic News
Taiwan Market Poised For Strong Open
7/1/2009 8:12 PM ET
(RTTNews) -
The Taiwan stock market has moved higher now in consecutive sessions, collecting more than 180 points or 2.8 percent in that span. The Taiwan Stock Exchange is getting close to the 6,600 point-plateau, and investors are confident that the market will crack that barrier at the opening of trade on Thursday, following the rest of the region to the upside.
The global forecast for the Asian markets is cautiously optimistic, thanks to better than expected economic data and sound corporate news. Strength among the commodities and oil companies are expected to push the regional bourses higher - especially after the European markets finished sharply higher and the U.S. bourses also ended with modest gains.
The TSE finished sharply higher on Wednesday, thanks to solid gains among the financials, technology stocks and construction shares.
For the day, the index surged 146.81 points or 2.28 percent to close at 6,578.97 after trading between 6,433.69 and 6,593.78. Leading the gainers, Huang Hsiang Construction and Chong Hong Construction both finished limit-up.
The lead from Wall Street is positive, although stocks were unable to hold onto their strong gains, steadily ceding ground over the course of Wednesday's session after moving sharply higher in morning trading. Nonetheless, the major averages all finished in positive territory amid yet another low volume session.
Early gains came on the heels of a report from the Institute for Supply Management, which said its index of activity in the manufacturing rose to 44.8 in June from 42.8 in May, although a reading below 50 indicates a contraction in the sector. The index came roughly in line with the expectations of economists, who forecast a reading of 44.6.
Separately, housing industry group NAR said its pending home sales index rose 0.1 percent to 90.7 in May from an upwardly revised reading of 90.6 in April. Economists had been expecting the index to come in unchanged compared to the 90.3 originally reported for the previous month.
The day's optimism was mitigated by data from the U.S. Commerce Department revealing that construction spending fell 0.9 percent in May following a revised 0.6 percent increase in the previous month. Economists had expected construction spending to fall by 0.6 percent compared to the 0.8 percent increase that was originally reported for April.
Meanwhile, ADP said that non-farm private employment fell by 473,000 jobs in June following a revised decrease of 485,000 jobs in May. Economists had expected a decrease of 394,000 jobs compared to the loss of 532,000 jobs originally reported for the previous month. While employment fell by more than expected, the decrease in jobs marked the smallest drop since October of 2008, when employment fell by 352,000 jobs.
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