Tech Shares Likely To Support Taiwan Stock Market

The Taiwan stock market has tracked higher in consecutive trading days, improving nearly 120 points or 0.6 percent along the way. The Taiwan Stock Exchange now sits just beneath the 18,290-point plateau and it may find additional support again on Wednesday.

The global forecast for the Asian markets is positive, with support expected from the oil and technology stocks. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

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

For the day, the index rose 48.83 points or 0.27 percent to finish at 18,288.21 after trading between 18,135.43 and 18,293.53.

Among the actives, Cathay Financial soared 3.86 percent, while Mega Financial rallied 2.35 percent, CTBC Financial surged 3.79 percent, Fubon Financial skyrocketed 4.58 percent, First Financial jumped 1.39 percent, E Sun Financial strengthened 1.21 percent, Taiwan Semiconductor Manufacturing Company climbed 1.24 percent, Largan Precision dipped 0.20 percent, Catcher Technology declined 1.56 percent, MediaTek retreated 1.37 percent, Delta Electronics advanced 1.23 percent, Formosa Plastic gained 0.47 percent, Asia Cement was up 0.11 percent, Taiwan Cement added 0.42 percent and United Microelectronics Corporation and Hon Hai Precision were unchanged.

The lead from Wall Street is firm as the major averages opened lower on Tuesday and were directionless through the morning but accelerated into the green in the afternoon, finishing near daily highs.

The Dow jumped 183.15 points or 0.51 percent to finish at 36,252.02, while the NASDAQ surged 210.62 points or 1.41 percent to end at 15,153.82 and the S&P 500 gained 42.78 points or 0.92 percent to close at 4,713.07.

The turnaround on Wall Street came after Federal Reserve Chair Jerome Powell testified before a Senate Banking Committee hearing on his nomination for another term. Powell highlighted elevated inflation as a result of supply chain issues and said the Fed would use all of its tools to prevent higher inflation from becoming entrenched.

While Powell's remarks have been described as hawkish, they are not seen as indicating the Fed will be more aggressive than already suggested by the minutes of the central bank's latest meeting.

Treasury yields moved to the downside in reaction to Powell's testimony, with the benchmark ten-year yield continuing to give ground after reaching its highest intraday level since January 2020 on Monday.

Crude oil prices moved sharply higher Tuesday, lifting the most active crude futures contract to the highest settlement in about two months. Hopes that the spread of the Omicron variant will not derail the global economy and adversely impact energy demand supported oil prices. West Texas Intermediate crude oil futures for February spiked $2.99 or 3.8 percent at $81.22 a barrel.

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