The Taiwan stock market has experienced gains for three consecutive sessions, ascending nearly 1,000 points, or 4.3%, during this period. The Taiwan Stock Exchange currently resides just above the 23,250-point mark and is poised for potential further gains on Thursday.
The projection for Asian markets remains positive, driven by an optimistic outlook on interest rates, though geopolitical factors might constrain potential gains. Both European and U.S. markets have shown upward trends, setting the tone for Asian exchanges to open on a similar note.
On Wednesday, the TSE saw modest gains buoyed by technology stocks, despite some weakness in the plastics sector and a mixed performance among financials. The index ultimately surged 227.87 points, marking a 0.99% increase, to close at a daily high of 23,255.33, after reaching a low of 23,034.70 during trading.
In terms of active stocks, First Financial increased by 0.36%, whereas Fubon Financial decreased by 0.33%, E Sun Financial dropped 0.90%, while Taiwan Semiconductor Manufacturing Company strengthened by 1.42%. United Microelectronics Corporation declined by 0.78%, Hon Hai Precision surged by 2.29%, Largan Precision climbed 1.20%, Catcher Technology dipped by 0.75%, MediaTek added 0.38%, Delta Electronics advanced 1.02%, Novatek Microelectronics rose 0.94%, Formosa Plastics fell by 0.96%, Nan Ya Plastics plunged 2.40%, Asia Cement dropped 2.53%, and Cathay Financial, Mega Financial, and CTBC Financial remained unchanged.
Wall Street's influence was positive, with key indices opening higher on Wednesday and maintaining gains throughout the session, ultimately closing at record highs. The Dow Jones Industrial Average rallied 308.51 points or 0.69% to settle at 45,014.04. The NASDAQ jumped 254.21 points or 1.30% to finish at 19,735.12, and the S&P 500 gained 36.61 points or 0.61% to conclude at 6,086.49.
The bullish sentiment on Wall Street stemmed from optimism over the direction of interest rates following weaker-than-expected U.S. economic data. According to payroll processor ADP, U.S. private sector employment increased slightly less than anticipated in November. Additionally, data from the Institute for Supply Management indicated a more considerable deceleration in the U.S. service sector than expected last month.
In response to this data, the CME Group's FedWatch Tool now indicates a 75.5% probability that the Federal Reserve will reduce interest rates by 25 basis points later this month. However, Fed Chair Jerome Powell underscored the central bank's prudent approach to potential rate cuts, citing the economy's sustained robustness during comments made later in the day.
On the commodities front, crude oil prices plummeted Wednesday amid geopolitical tensions in the Middle East, the Russia/Ukraine conflict, and political turmoil in South Korea and France. West Texas Intermediate Crude oil futures for January fell by $1.40, or 2%, closing at $68.54 per barrel.
Looking closer to Taiwan, November's consumer price index figures are expected to be released later today; in October, inflation rose by 0.25% month-on-month and 1.69% year-on-year.
