FX.co ★ Taiwan Stock Market Poised To Open To The Upside Again On Wednesday

On Tuesday, the Taiwan stock market concluded a two-day losing streak, during which it had dropped over 500 points, or approximately 2.1 percent. The Taiwan Stock Exchange (TSE) now rests just below the 24,000-point level and is anticipated to receive additional support on Wednesday.

The global outlook for Asian markets is optimistic, driven by strong earnings reports and favorable interest rate expectations. Although European markets declined, U.S. markets showed gains, and it is expected that Asian markets will follow the upward trend set by the latter.

The TSE saw modest gains on Tuesday, with financial shares performing well, while plastics showed weakness, and technology companies delivered mixed results. The index increased by 117.89 points, or 0.49 percent, closing at 23,997.25 after fluctuating between 23,861.77 and 24,174.18.

Specific stocks showed varied performances: Cathay Financial rose by 0.62 percent, Mega Financial fell by 0.24 percent, CTBC Financial decreased by 0.80 percent, Fubon Financial gained 0.88 percent. Taiwan Semiconductor Manufacturing Company surged by 1.44 percent, yet United Microelectronics Corporation decreased by 0.75 percent. Hon Hai Precision dropped 1.62 percent, while Largan Precision edged up 0.16 percent. Catcher Technology advanced 1.58 percent, MediaTek slipped 0.74 percent, Delta Electronics fell 0.60 percent, and Novatek Microelectronics declined 0.89 percent. Formosa Plastics slightly decreased by 0.17 percent, Nan Ya Plastics tumbled 1.51 percent, Asia Cement fell 1.43 percent, and First Financial and E Sun Financial remained unchanged.

On Wall Street, the Dow Jones Industrial Average surged by 742.76 points, or 1.85 percent, reaching a record high of 40,945.48. The NASDAQ Composite increased by 36.77 points, or 0.20 percent, to close at 18,509.34, and the S&P 500 added 35.98 points, or 0.64 percent, ending at a record 5,667.20.

Wall Street's strength was bolstered by positive earnings reports from companies such as UnitedHealth (UNH), Bank of America (BAC), and Morgan Stanley (MS). Additionally, traders responded favorably to recent U.S. economic data, including a Commerce Department report showing no change in retail sales for June. The Labor Department also reported that import prices were flat, whereas export prices fell by 0.5 percent.

Gold stocks experienced significant gains due to a sharp increase in the price of the precious metal, pushing the NYSE Arca Gold Bugs Index up by 3.4 percent, achieving a two-year closing high.

Conversely, oil prices fell on Tuesday, marking the third consecutive session of losses amid concerns over demand outlook and a slightly stronger dollar. West Texas Intermediate (WTI) Crude oil futures for August decreased by $1.15, or 1.4 percent, to $80.76 per barrel.