The Taiwan stock market has experienced declines in the past two trading sessions, dropping nearly 300 points, or 1.3%. The Taiwan Stock Exchange now hovers just above the 22,550 mark, with expectations for a positive opening on Friday.
Global sentiment points to a favorable outlook for the Asian markets, with strong earnings reports and support from oil prices bolstering confidence. Following positive outcomes in European and U.S. markets, Asian stocks are anticipated to follow suit.
On Thursday, the TSE saw modest declines, driven by setbacks in financial stocks, technology companies, and the plastics sector. The index fell by 132.70 points, or 0.58%, to close at 22,555.66, after ranging between 22,490.28 and 22,708.57.
Among active stocks, Cathay Financial decreased by 1.19%, Mega Financial slipped 1.25%, Fubon Financial fell 1.33%, while E Sun Financial rose 1.11%. Taiwan Semiconductor Manufacturing Company lost 1.46%, United Microelectronics Corporation weakened by 1.11%, and Hon Hai Precision dropped 1.70%. Conversely, Largan Precision gained 1.07%. Catcher Technology declined 1.72%, MediaTek was down 0.78%, Delta Electronics fell 1.42%, though Novatek Microelectronics increased 0.52%. Formosa Plastics plunged 2.65%, Nan Ya Plastics tumbled 1.71%, Asia Cement eased 0.11%, with CTBC Financial and First Financial remaining unchanged.
Wall Street offered a positive lead, with major indices starting slightly lower on Thursday but gradually improving to close in the green. The Dow surged by 461.88 points, or 1.06%, to settle at 43,870.35. The NASDAQ edged up 6.28 points, or 0.03%, closing at 18,972.42, and the S&P 500 rose 31.60 points, or 0.53%, finishing at 5,948.71.
The Dow's significant advance was supported by strong performances from IBM Corp. (IBM), Sherwin-Williams (SHW), and Salesforce (CRM). The NASDAQ, while less decisive, reflected traders' focus on AI leader Nvidia (NVDA), which exceeded third-quarter earnings and revenue forecasts, despite some caution regarding potential revenue deceleration.
In U.S. economic developments, the Labor Department reported an unexpected drop in initial jobless claims, reaching their lowest in over six months. Additionally, the Conference Board's leading economic index fell more than forecasted in October.
Oil prices climbed on Thursday, with West Texas Intermediate crude futures for December rising $1.35, or 1.96%, to $70.10 a barrel, driven by geopolitical tensions stemming from the Russia-Ukraine conflict overshadowing data indicating robust supply.
Domestically, Taiwan is set to release October unemployment statistics today. The jobless rate in September stood at 3.38%.
