Taiwan stock market snaps two-day slide

by Jonathan Adams
Taiwan stock market

The Taiwan Stock Exchange finished sharply higher on Monday following gains from the financial shares, technology stocks and cement companies

The Taiwan stock market on Monday snapped the two-day slide in which it had fallen more than 70 points or 0.6 percent. The Taiwan Stock Exchange now rests just shy of the 11,080-point plateau and it may see additional support on Tuesday.

The global forecast for the Asian markets is upbeat on optimism for economic recovery following the Covid-19 measures. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The TSE finished sharply higher on Monday following gains from the financial shares, technology stocks and cement companies.

For the day, the index jumped 136.86 points or 1.25 percent to finish at 11,079.02 after trading between 10,971.40 and 11,109.29.

Among the actives, Mega Financial eased 0.16 percent, while CTBC Financial and Cathay Financial both collected0.60 percent, Fubon Financial rose 0.24 percent, First Financial increased 0.44 percent, E Sun Financial gathered 1.50 percent, Taiwan Semiconductor Manufacturing Company climbed 1.20 percent, United Microelectronics Corporation advanced 1.29 percent, Hon Hai Precision added 0.53 percent, Largan Precision soared 6.00 percent, Catcher Technology gained 0.69 percent, MediaTek shed 0.32 percent, Formosa Plastic perked 0.96 percent, Asia Cement spiked 1.26 percent and Taiwan Cement was up 1.29 percent.

The lead from Wall Street is positive as stocks extended last week’s gains on Monday, sending the major averages to multi-month closing highs.

The Dow added 91.91 points or 0.36 percent to finish at 25,475.02, while the NASDAQ gained 62.18 points or 0.66 percent to end at 9,552.05 and the S&P 500 rose 11.42 points or 0.38 percent to close at 3,055.73.

The continued strength on Wall Street followed a report from the Institute for Supply Management showing U.S. manufacturing activity contracted at a slower rate last month. Also, the Commerce Department showed a less than expected pullback in U.S. construction spending in April.

Traders remain generally optimistic about economy reopening despite political unrest across the country following the death of George Floyd, which has forced a number of major retailers to temporarily close their stores in areas hit hard by protests.

Crude oil prices ticked lower on Monday as traders looked ahead to an upcoming meeting of the OPEC+ group as early as Thursday to discuss output. Crude for July delivery edged down $0.05 to $35.44 a barrel on the day.

This article is for information purposes only.
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