Taiwan Shares May Bounce Higher Again On Tuesday

The Taiwan stock market on Monday ended the seven-day winning streak in which it had accelerated more than 350 points or 3.1 percent. The Taiwan Stock Exchange now rests just above the 11,540-point plateau although it's got a firm lead for Tuesday's trade.

The global forecast for the Asian markets is upbeat as hopes for a solid economic recovery outweighed a rising number of coronavirus cases worldwide. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The TSE finished sharply lower on Monday with profit taking across the board - particularly among the financials and technology stocks.

For the day, the index dropped 118.05 points or 1.01 percent to finish at 11,542.62 after trading between 11,500.65 and 11,608.80.

Among the actives, Cathay Financial shed 0.71 percent, while Mega Financial dropped 1.12 percent, Fubon Financial sank 0.79 percent, First Financial eased 0.22 percent, E Sun Financial fell 0.54 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.73 percent, United Microelectronics Corporation skidded 1.27 percent, Hon Hai Precision spiked 2.04 percent, Largan Precision retreated 1.75 percent, Catcher Technology surrendered 1.80 percent, MediaTek tanked 2.59 percent, Asia Cement lost 0.46 percent, Taiwan Cement slid 0.47 percent, Formosa Plastic was down 0.92 percent and CTBC Financial was unchanged.

The lead from Wall Street is broadly positive as stocks shook off a soft open Monday to move solidly into the green, offsetting losses from the previous session.

The Dow surged 580 points or 2.32 percent to finish at 25,595.80, while the NASDAQ spiked 116.93 points or 1.20 percent to end at 9,874.15 and the S&P 500 soared 44.19 points or 1.47 percent to close at 3,053.24.

The soft open on Wall Street was in response to rising numbers of new cases of coronavirus in the U.S. and several other parts across the globe. Data from Johns Hopkins University showed the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.

But the markets rebounded when the National Association of Realtors said that pending home sales in the United States surged a record 44.3 percent in May. Also, the Dallas Fed's manufacturing index fell less than expected, further stoking optimism for economic recovery.

Crude oil prices climbed higher Monday despite concerns about the outlook for energy demand amid the spike in the virus. West Texas Intermediate crude futures for August ended up $1.21 or 3.1 percent at $39.70 a barrel.

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