Plus   Neg

Tech Shares Likely To Fuel Taiwan Market Rally

The Taiwan stock market has moved higher in three straight sessions, collecting almost 410 points or 3.5 percent along the way. The Taiwan Stock Exchange now sits just above the 12,910-point plateau and it's looking at another green light for Friday's trade.

The global forecast for the Asian markets is upbeat, thanks to support from technology stocks and decent economic data. The European markets were down and the U.S. bourses were up and the Asian markets are expected to follow the latter lead.

The TSE finished modestly higher on Thursday following gains from the financial shares, technology stocks and cement companies.

For the day, the index advanced 111.20 points or 0.87 percent to finish at 12,913.50 after trading between 12,851.20 and 12,971.87.

Among the actives, Cathay Financial added 0.88 percent, while Mega Financial collected 0.78 percent, CTBC Financial gained 0.52 percent, Fubon Financial rose 0.36 percent, First Financial gathered 0.84 percent, E Sun Financial increased 0.37 percent, Taiwan Semiconductor Manufacturing Company climbed 1.40 percent, United Microelectronics Corporation skyrocketed 6.83 percent, Hon Hai Precision jumped 1.41 percent, Largan Precision surged 6.80 percent, Catcher Technology advanced 1.15 percent, MediaTek added 0.27 percent, Asia Cement was up 0.49 percent, Taiwan Cement spiked 1.51 percent and Formosa Plastic perked 1.28 percent.

The lead from Wall Street is firm as stocks showed a lack of direction in Thursday's early trade before showing a strong move to the upside in the afternoon, sending the NASDAQ to another fresh record closing high.

The Dow added 185.46 points or 0.68 percent to finish at 27,386.98, while the NASDAQ jumped 109.67 points or 1.00 percent to end at 11,108.07 and the S&P 500 rose 21.39 points or 0.64 percent to close at 3,349.16.

The strength that emerged on Wall Street reflected substantial gains by big-name tech companies like Facebook (FB), Apple (AAPL), Google parent Alphabet (GOOGL), Netflix (NFLX) and Microsoft (MSFT).

Positive sentiment was generated by a Labor Department report showing first-time claims for U.S. unemployment benefits pulled back more than expected last week. The Labor Department is scheduled to release its more closely watched report on July's employment situation later today.

Traders also kept an eye on developments in Washington, as Democrats and Republicans continued to negotiate over a new coronavirus relief bill, with both sides suggesting an agreement will eventually be reached.

Crude oil futures snapped a four-day winning streak and ended lower on Thursday as traders weighed crude demand and supply levels amid the ongoing coronavirus pandemic. West Texas Intermediate Crude oil futures for September fell $0.24 or 0.6 percent at $41.95 a barrel.

Closer to home, Taiwan will release July numbers for imports, exports and trade balance later today. Imports are tipped to decline 3.1 percent on year after sinking 8.6 percent in June. Exports are called lower by an annual 0.22 percent after sliding 3.8 percent in the previous month. The trade surplus is pegged at $4.277 billion, down from $4.84 billion.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT