Home Markets Taiwan Stock Market Tipped To Head South Again On Tuesday

Taiwan Stock Market Tipped To Head South Again On Tuesday

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(RTTNews) – The Taiwan stock market on Monday ended the four-day losing streak in which it had lost more than 200 points or 1.7 percent. The Taiwan Stock Exchange now rests just above the 12,900-point plateau although it’s expected to move firmly lower again on Tuesday.

The global forecast for the Asian markets is soft on doubts for stimulus to combat the rising number of coronavirus cases. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

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

For the day, the index jumped 157.97 points or 1.24 percent to finish at 12,908.34 after trading between 12,803.32 and 12,911.41.

Among the actives, Cathay Financial advanced 0.66 percent, while Mega Financial added 0.36 percent, CTBC Financial collected 0.56 percent, Fubon Financial gained 0.24 percent, First Financial improved 0.25 percent, E Sun Financial lost 0.60 percent, Taiwan Semiconductor Manufacturing Company spiked 1.89 percent, United Microelectronics Corporation climbed 1.14 percent, Hon Hai Precision rallied 3.44 percent, Largan Precision soared 4.05 percent, Catcher Technology rose 0.28 percent, MediaTek jumped 1.76 percent, Formosa Plastic was up 0.13 percent, Asia Cement gathered 1.11 percent and Taiwan Cement perked 0.37 percent.

The lead from Wall Street is broadly negative as stocks showed a lack of direction early in Monday’s trade but headed firmly south as the day progressed.

The Dow tumbled 410.89 points or 1.44 percent to finish at 28,195.42, while the NASDAQ sank 192.67 points or 1.65 percent to close at 11,478.88 and the S&P 500 dropped 56.89 points or 1.63 percent to end at 3,426.92.

The weakness on Wall Street reflected concerns about whether lawmakers in Washington will reach an agreement on a new stimulus bill, with reports suggesting there remains an array of additional differences that must be addressed in a comprehensive manner in the next 48 hours.

In economic news, the National Association of Homebuilders said that homebuilder confidence climbed to a fresh record high in October versus expectations for no change.

Crude oil futures ended slightly lower on Monday, weighed down by lingering concerns about energy demand outlook due to rising coronavirus cases. West Texas Intermediate crude oil futures for November ended at $40.83 a barrel, down $0.05 or 0.1 percent at $40.83 a barrel.

Closer to home, Taiwan will provide September numbers for export orders later today, with forecasts suggesting an increase of 9.0 percent on year – slowing from 13.6 percent in August.