Higher Open Called For Taiwan Stock Market

(RTTNews) - The Taiwan stock market on Thursday ended the four-day winning streak in which it had surged more than 2,800 points or 6 percent to a fresh record closing high. The Taiwan Stock Exchange now sits just above the 45,675-point plateau although it's likely open in the green on Friday.

The global forecast for the Asian markets is mostly positive on easing oil prices and optimism for an end to hostilities in the Middle East. The European markets were up and the U.S. bourse were mostly higher and the Asian markets are also tipped to move to the upside.

The TSE finished sharply lower on Thursday following losses from the technology stocks and plastics companies, although the financial sector offered support.

For the day, the index stumbled 781.70 points or 1.68 percent to finish at the daily low of 45,677.46 after peaking at 46,364.07.

Among the actives, Cathay Financial rallied 2.83 percent, while Mega Financial climbed 1.08 percent, CTBC Financial tanked 3.55 percent, First Financial jumped 1.90 percent, Fubon Financial collected 0.88 percent, E Sun Financial vaulted 1.36 percent, Taiwan Semiconductor Manufacturing Company retreated 1.65 percent, United Microelectronics Corporation plunged 4.21 percent, Hon Hai Precision crashed 5.18 percent, Largan Precision tumbled 4.02 percent, Catcher Technology plummeted 5.84 percent, MediaTek slumped 2.53 percent, Delta Electronics sank 1.22 percent, Novatek Microelectronics stumbled 2.78 percent, Formosa Plastics contracted 2.31 percent, Nan Ya Plastics declined 1.77 percent and Asia Cement added 0.44 percent.

The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Thursday and then tracked steadily higher throughout the day but still ended on opposite sides of the line.

The Dow soared 874.86 points or 1.73 percent to finish at a record 51,561.93, while the NASDAQ dipped 23.02 points or 0.09 percent to close at 26,830.96 and the S&P 500 added 30.63 points or 0.41 percent to end at 7,584.31.

The rebound by the Dow reflected a spike by shares of UnitedHealth (UNH) following an upgrade by Bank of America. Dow components American Express (AXP), Goldman Sachs (GS) and Merck (MRK) also posted strong gains.

The NASDAQ climbed well off its worst levels but still ended the day modestly lower amid weakness among technology stocks.

A steep drop by shares of Broadcom (AVGO) weighed on the tech sector, despite fiscal Q2 earnings that exceeded estimates although the company failed to raise its full-year forecast of $100 billion in AI chip sales.

Crude oil prices plunged on Wednesday on hopes of de-escalation in the Middle East following an Israel-Lebanon ceasefire announcement. West Texas Intermediate crude for July delivery was down $3.00 or 3.12 percent at $93.02 per barrel.

Closer to home, Taiwan will see May figures for consumer prices later today; in April, overall inflation was up 0.79 on month and 1.74 percent on year.