The Taiwan stock market has shown notable resilience, marking consecutive sessions of gains, accumulating over 675 points, or 2.7 percent. Currently, the Taiwan Stock Exchange (TSE) hovers just below the 26,250-point threshold, although forecasts suggest that it may remain stagnant on Wednesday.
Global market sentiments present a mixed picture, particularly as uncertainties surrounding interest rate trajectories grow. European markets displayed varied performances, while U.S. exchanges declined, leading expectations for Asian markets to mirror this ambivalence.
On Tuesday, the TSE experienced a robust increase, buoyed primarily by technology sector advancements despite a mixed performance from financial stocks. The index climbed by 366.77 points, or 1.42 percent, concluding at 26,247.37, following a trading range between 26,041.69 and 26,307.30.
Several notable stocks contributed to the day’s performance. Mega Financial saw a modest rise of 0.24 percent, while Fubon Financial increased by 0.16 percent. Conversely, E Sun Financial faced a setback, declining by 1.19 percent. Key players in the tech sector, including Taiwan Semiconductor Manufacturing Company, experienced significant gains, climbing 3.47 percent, while United Microelectronics Corporation increased by 1.97 percent. Other tech companies, like Hon Hai Precision and Catcher Technology, also saw boosts of 2.31 percent and 0.53 percent, respectively. In contrast, MediaTek dropped by 2.14 percent, and Nan Ya Plastics tumbled 1.85 percent.
U.S. stock market performance, which influences the sentiment in Asia, was soft on the same day. Major indices opened on a mixed note but gradually trended lower, finishing near session lows. The Dow Jones Industrial Average decreased by 88.76 points, or 0.19 percent, concluding at 46,292.78. The NASDAQ fell 215.50 points, or 0.95 percent, ending at 22,573.47, while the S&P 500 dropped 36.83 points, or 0.55 percent, to close at 6,656.92.
This downturn on Wall Street is attributed in part to concerns surrounding potentially overvalued stocks. Federal Reserve Chair Jerome Powell’s recent remarks indicated that equity prices might be “fairly highly valued” following a streak of record highs. He described the current monetary policy environment as a “challenging situation,” citing risks related to inflation trending upward while employment risks tilt downward.
Additionally, oil prices surged significantly on Tuesday following complications with Iraq’s oil exports to Turkey, which reportedly stalled due to payment disputes. West Texas Intermediate crude for October delivery climbed by $1.26, or 2.02 percent, reaching $63.54 per barrel.
In local developments, Taiwan is set to release its industrial production figures for August today, following a noteworthy spike of 18.11 percent year-on-year in July. Investors are keenly anticipating these figures to gauge the country’s economic trajectory amidst the fluctuating market conditions.
