Overbought Taiwan Market Nonetheless Called Higher

The Taiwan stock market has climbed higher in back-to-back sessions, advancing almost 110 points or 1 percent along the way. Now at a 27-year closing high, the Taiwan Stock Exchange now rests just beneath the 10,580-point plateau and it’s looking at a green light again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with upward momentum from last week’s U.S. jobs report likely capped by a decline in crude oil prices. The European markets were mixed and flat, while the U.S. bourses were slightly higher – and the Asian markets figure to split the difference.

The TSE finished modestly higher on Monday following gains from the financials and a mixed performance from the technology stocks.

For the day, the index gathered 72.82 points or 0.69 percent to finish at 10,579.38 after trading between 10,521.69 and 10,592.31 on turnover of 126.554 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company climbed 1.41 percent, while Hon Hai Precision jumped 1.67 percent, Catcher Technology spiked 3.84 percent, AU Optronics dropped 1.23 percent, Largan Precision shed 0.78 percent, Innolux skidded 1.71 percent, Formosa Plastics added 0.65 percent, Far Eastern New Century gained 0.61 percent, Cathay Financial was up 0.51 percent, Mega Financial advanced 1.55 percent, Fubon Financial collected 1.06 percent and Taiwan Cement gathered 0.57 percent.

The lead from Wall Street is cautiously optimistic as stocks moved slightly higher on Monday, allowing the Dow to hit a fresh record high close for the ninth straight session.

The NASDAQ climbed 32.21 points or 0.5 percent to 6,383.77, while the Dow added 25.61 points or 0.1 percent to 22,118.42 and the S&P 500 rose 4.08 points or 0.2 percent to 2,480.91.

The modest strength reflected ongoing positive sentiment following last Friday’s upbeat monthly jobs report – although the stronger than expected job growth also raised concerns about the outlook for interest rates.

Oil service stocks were substantially lower on Monday, dragging the Philadelphia Oil Service Index down 2.6 percent as crude for September delivery fell $0.19 to $49.39 a barrel.

Closer to home, Taiwan will release July data for consumer and wholesale prices later today; In June, they were up 1.0 percent on year and down 1.68 percent on year, respectively.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *