Additional Support Tipped For Taiwan Stock Market

(RTTNews) – The Taiwan stock market has finished higher in three straight sessions, advancing almost 400 points or 3.2 percent along the way. The Taiwan Stock Exchange now sits just beneath the 12,760-point plateau and it may add to its winnings again on Wednesday.

The global forecast for the Asian markets is flat to higher, nudged into the green by gains in crude oil prices. The European and U.S. markets were mixed and little changed and the Asian bourses are likely to follow suit.

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

For the day, the index jumped 111.12 points or 0.88 percent to finish at 12,758.25 after trading between 12,698.85 and 12,814.56.

Among the actives, Cathay Financial jumped 1.50 percent, while Mega Financial shed 0.34 percent, CTBC Financial rose 0.26 percent, Fubon Financial soared 4.08 percent, First Financial added 0.23 percent, E Sun Financial collected 0.74 percent, Taiwan Semiconductor Manufacturing Company climbed 1.52 percent, United Microelectronics Corporation tumbled 1.99 percent, Hon Hai Precision advanced 0.90 percent, Largan Precision dropped 0.83 percent, MediaTek added 0.68 percent, Asia Cement was up 0.12 percent, Taiwan Cement increased 0.11 percent and Catcher Technology and Formosa Plastic were unchanged.

The lead from Wall Street is cautiously optimistic as stocks moved higher on Tuesday, although the Dow eventually slipped into the red while the NASDAQ and S&P 500 hit fresh record closing highs.

The Dow shed 60.02 points or 0.21 percent to finish at 28,248.44, while the NASDAQ added 86.75 points or 0.76 percent to end at 11,466.47 and the S&P 500 rose 12.34 points or 0.36 percent to close at 3,443.62.

The drop by the Dow came as Exxon Mobil (XOM), Raytheon (RTX) and Pfizer (PFE) tumbled on the news they’re being removed from the blue chip index. Those three stocks will be replaced by Salesforce.com (CRM), Honeywell (HON), and Amgen (AMGN), which rallied.

Traders were also looking ahead to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium on Thursday. Analysts suggest Powell will signal an increased tolerance for higher inflation, with some predicting he will call for a shift to average inflation targeting rather than the long-standing 2 percent target.

In economic news, the Commerce Department reported a bigger than expected spike in new home sales last month – while a separate report from the Conference Board showed its consumer confidence index slumped again in August.

Oil prices moved higher on Tuesday, fueled by storm-driven production cuts on the U.S. Gulf Coast as traders look ahead to weekly inventory data. West Texas Intermediate crude futures jumped 73 cents or 1.7 to $43.35 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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