The Taiwan stock market experienced a rebound on Tuesday, recovering from a steep decline that interrupted a five-day winning streak. During this period, the market had achieved a gain of over 1,000 points, translating to an approximate 4.5 percent increase. As of now, the Taiwan Stock Exchange index is positioned just shy of the 22,800 mark, with potential for continued gains anticipated on Wednesday.
The outlook for Asian markets is generally positive, bolstered by diminishing apprehensions of a trade war. While European markets showed mixed results, U.S. markets exhibited an upward trend, suggesting that Asian markets might reach a middle ground.
On Tuesday, the TSE closed with moderate gains despite mixed performances in financial and technology sectors, while companies in the plastics sector faced downward pressure. Specifically, the index climbed by 99.25 points, or 0.44 percent, to close at 22,793.96. The trading range for the day was between 22,720.62 and 22,934.31.
Among the active stocks, Cathay Financial increased by 0.17 percent. In contrast, Mega Financial dropped 1.15 percent, First Financial decreased by 1.07 percent, and Fubon Financial fell by 1.20 percent. E Sun Financial saw a significant rise of 2.14 percent, while Taiwan Semiconductor Manufacturing Company advanced by 2.34 percent. However, United Microelectronics Corporation fell by 0.99 percent, Hon Hai Precision decreased by 0.30 percent, and Largan Precision tumbled 1.94 percent. Catcher Technology, MediaTek, and Delta Electronics all recorded losses, while Novatek Microelectronics posted a gain. Formosa Plastics and Nan Ya Plastics faced declines, whereas Asia Cement increased slightly, and CTBC Financial remained unchanged.
Turning to Wall Street, the tone was positive as major indices opened with varied results but ultimately climbed throughout the session, closing strongly in positive territory. The Dow Jones Industrial Average increased by 134.13 points, or 0.30 percent, to finish at 44,556.04. Meanwhile, the NASDAQ surged by 262.06 points, or 1.35 percent, closing at 19,654.02, and the S&P 500 rose by 43.31 points, or 0.72 percent, to end at 6,037.88.
The robust performance on Wall Street partly stems from reduced concerns over a potential global trade war. This shift followed President Donald Trump's decision to delay imposing 25 percent tariffs on imports from Mexico and Canada for a month. Additionally, market sentiment improved upon the release of a Labor Department report indicating a larger-than-expected decrease in U.S. job openings in December. This development has fostered optimism regarding interest rate trends in anticipation of the Labor Department's forthcoming monthly jobs report, scheduled for release on Friday.
Oil prices experienced a decline on Tuesday following Trump's postponement of levies on Canadian and Mexican exports to the U.S. Specifically, West Texas Intermediate Crude oil futures for March settled at $72.70 per barrel, reflecting a drop of $0.46 or approximately 0.63 percent.
