The Taiwanese stock market has seen a steady rise over the past three sessions, gaining over 560 points, a 2.8 percent increase. This surge has brought the Taiwan Stock Exchange close to the 19,500-point level, and it is expected to receive additional support.
There is a positive global forecast for Asian markets due to optimism regarding interest rate outlooks. This is reflected in the upward trend witnessed in European and U.S. markets, which Asian markets are likely to emulate.
On Wednesday, the Taiwan Stock Exchange (TSE) reported modest gains, primarily driven by gains in the financial and technology sectors. The index rose 112.53 points, or 0.58 percent, closing at 19,499.45 after trading between 19,246.30 and 19,532.30.
Active companies such as Cathay Financial, Mega Financial, CTBC Financial, First Financial, E Sun Financial, and Taiwan Semiconductor Manufacturing Company reported gains. However, companies like Nan Ya Plastics and Asia Cement experienced a decline of 1.05 percent and 0.12 percent respectively.
Wall Street's opening on Wednesday had a positive influence as it started strong, experienced a mid-day lull but rallied late to conclude with a modest increase.
Federal Reserve Chair Jerome Powell's congressional testimony also elicited a positive response. In his testimony, Powell indicated that the Federal Reserve may start reducing interest rates later in the year, provided there's "greater confidence" in sustainable inflation towards 2 percent.
In terms of economic indicators, payroll processor ADP reported a less than expected increase in U.S. private sector employment in February. Meanwhile, crude oil futures increased after substantial decreases in gasoline and distillate stockpiles last week. For example, West Texas Intermediate Crude oil futures for April rose by $0.98 or 1.25 percent to $79.13 a barrel.
Looking ahead, Taiwan will release its consumer price index for February; in January, monthly inflation was 0.21 percent and yearly inflation was 1.79 percent.
