The Taiwan stock market has experienced a consecutive rise over five sessions, amassing more than 1,100 points or a 5 percent increase. The Taiwan Stock Exchange (TSE) currently hovers just above the 22,760-point mark, although investors anticipate profit-taking on Thursday.
The global outlook for Asian markets is predominantly negative, with many overbought regional exchanges expected to undergo profit-taking. Both European and U.S. markets ended predominantly lower, suggesting a similar trend might follow in the Asian markets.
On Wednesday, the TSE closed significantly higher, bolstered by gains in financials, technology stocks, and plastics companies. The index surged 329.82 points or 1.47 percent to close at 22,761.60, fluctuating between a low of 22,569.29 and a high of 22,785.32.
Key performers included Cathay Financial, which rallied 1.21 percent; Mega Financial, which rose 0.13 percent; CTBC Financial, which dipped 0.14 percent; First Financial, which added 0.54 percent; and Fubon Financial, which climbed 0.76 percent. Taiwan Semiconductor Manufacturing Company saw a 1.82 percent jump, United Microelectronics Corporation climbed 1.11 percent, Hon Hai Precision accelerated by 3.01 percent, and Largan Precision advanced 0.96 percent. Other significant movements included MediaTek spiking 2.51 percent, Delta Electronics rising 0.25 percent, and Formosa Plastics surging 4.33 percent. Novatek Microelectronics, however, dropped 0.96 percent. Nan Ya Plastics strengthened by 1.28 percent, Asia Cement improved 1.33 percent, and E Sun Financial remained unchanged.
Wall Street offered a lukewarm lead as the major indices opened mixed on Wednesday but trended lower throughout the session, closing predominantly in the red. The Dow dropped 293.47 points or 0.70 percent to end at 41,914.75, while the NASDAQ edged up 7.68 points or 0.04 percent to close at 18,082.21, and the S&P 500 declined 10.67 points or 0.19 percent, finishing at 5,722.26.
The mixed performance on Wall Street reflected traders' uncertainty about the near-term market outlook following recent gains that propelled the Dow and S&P 500 to record highs.
In economic developments, the Commerce Department indicated a significant pullback in new home sales for August. Upcoming reports this week include data on weekly jobless claims, durable goods orders, and personal income and spending, with a keen eye on a speech by Fed Chair Jerome Powell later today.
Oil prices dropped sharply on Wednesday amid uncertainty over demand and subsiding concerns about supply disruptions in Libya. November futures for West Texas Intermediate Crude oil fell $1.87 or 2.6 percent to settle at $69.69 per barrel.
