Taiwan Stock Market Tipped To Open In The Green

The Taiwan stock market rebounded on Tuesday, one day after it had snapped 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 11,620-point plateau and it's predicted to see continued support on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism for an economic recovery. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The TSE finished modestly higher on Tuesday following gains from the technology stocks and cement companies, while the financials were mixed.

For the day, the index advanced 78.62 points or 0.68 percent to finish at 11,621.24 after trading between 11,563.60 and 11,638.00.

Among the actives, Cathay Financial eased 0.12 percent, while CTBC Financial collected 0.49 percent, Fubon Financial rose 0.23 percent, Taiwan Semiconductor Manufacturing Company added 0.32 percent, United Microelectronics Corporation spiked 2.25 percent, Hon Hai Precision climbed 1.29 percent, Largan Precision soared 3.68 percent, Catcher Technology jumped 1.60 percent, MediaTek accelerated 2.48 percent, Asia Cement advanced 0.81 percent, Taiwan Cement was up 0.23 percent, Formosa Plastic perked 1.15 percent and Mega Financial, First Financial and E Sun Financial were unchanged.

The lead from Wall Street is broadly positive as stocks moved notably higher on Tuesday, extending the strong upward move seen in the previous session.

The Dow jumped 217.08 points or 0.85 percent to finish at 25,812.88, while the NASDAQ soared 184.61 points or 1.87 percent to end at 10.058.77 and the S&P 500 advanced 47.05 points or 1.54 percent to close at 3,100.29.

Traders continued to express optimism about the economic outlook despite the continued spike in new coronavirus cases across several states.

Adding to the positive sentiment, the Conference Board reported a bigger than expected improvement in consumer confidence in June. Also, a separate report released by MNI Indicators showed a continued contraction in Chicago-area business activity last month.

Traders also kept an eye on Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee regarding the response to the coronavirus pandemic. Powell said output and employment remain far below pre-pandemic levels and cautioned the outlook for the economy is "extraordinarily uncertain."

Crude oil prices drifted lower on Tuesday as worries about the outlook for energy demand persisted due to continued surge in new cases of coronavirus around the world. West Texas Intermediate crude oil futures for August ended down $0.43 or 1.1 percent at $39.27 a barrel.

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