The Taiwan stock market on Tuesday ended the three-day losing streak in which it had retreated almost 85 points or 1.2 percent. The Taiwan Stock Exchange finished just above the 7,220-point plateau, and now investors are anticipating another slightly higher open for the market on Wednesday.
The global forecast for the Asian markets remains upbeat following a successful Spanish bond auction and positive economic data from the United States - although profit-taking may limit the upside after large gains in the previous session. Steel and oil stocks figure to move higher, while gold and financials could decline. The European and U.S. markets finished firmly in the green, and the Asian markets are expected to follow that lead.
The TSE finished sharply higher following gains from the finance, technology, cement, construction, textile, food and plastic sectors.
For the day, the index climbed 117.46 points or 1.65 percent to finish at the daily high of 7,221.08 after trading as low as 7,118.36 on turnover of 100.03 billion Taiwan dollars. There were 2,996 gainers and 1,136 decliners, with 423 stocks finishing unchanged.
Among the gainers, Hon Hai Precision Industry jumped 4.19 percent, while Catcher Technology surged 5.68 percent and TPK Holding spiked 6.23 percent.
The lead from Wall Street is positive as stocks gave back some ground after failing to sustain an early upward move on Tuesday, but still managed to end higher. The markets benefited from a positive reaction to some upbeat news from overseas.
The early strength followed economic data from China, which reported that GDP increased by 8.9 percent in the fourth quarter compared to expectations for 8.7 percent growth. However, the pace of GDP growth slowed to 9.2 percent in 2011 from 10.3 percent in 2010.
News of a successful Spanish bond auction also generated some positive sentiment, with the results of the bond auction easing recent concerns about the European debt crisis.
In U.S. economic news, the New York Federal Reserve said its general business conditions index climbed to 13.5 in January from a revised 8.2 in December, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to edge up to 10.5 from the 9.5 originally reported for the previous month. With the bigger than expected increase, the general business conditions index rose to its highest level since coming in at 17.9 in April.
Buying interest waned over the course of morning trade, however, as traders continued to express concerns about a possible recession in Europe and the potential impact on the global economy.
Disappointing quarterly results from Citigroup (C) also helped to limit the upside for the markets, with the financial services giant falling by 8.2 percent on the day. The drop came after Citigroup reported fourth quarter earnings of $0.38 per share compared to $0.43 per share last year. Revenues fell 7 percent to $17.2 billion. Analysts had expected earnings of $0.49 per share on revenues of $18.5 billion.
On the other hand, Wells Fargo (WFC) closed moderately higher after reporting fourth quarter earnings that rose year-over-year and came in just above analyst estimates.
The major averages ended the day in positive territory but well off their highs for the session. The Dow rose 60.01 points or 0.5 percent to 12,482.07, the NASDAQ climbed 17.41 points or 0.6 percent to 2,728.08 and the S&P 500 advanced 4.58 points or 0.4 percent to 1,293.67.
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Market Analysis
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.