Higher Open Expected For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has climbed higher in two straight sessions, advancing almost 240 points or 1.9 percent along the way. The Taiwan Stock Exchange now rests just above the 13,220-point plateau and it's looking at another solid start for Tuesday's trade. The global forecast for the Asian markets is upbeat thanks to receding treasury levels and an improved outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference. The TSE finished sharply higher on Monday following gains from the financial shares, technology stocks and plastic companies.

For the day, the index jumped 197.02 points or 1.51 percent to finish at 13,223.73 after trading between 13,103.35 and 13,246.59. Among the actives, Cathay Financial increased 1.54 percent, while Mega Financial jumped 2.20 percent, CTBC Financial collected 2.63 percent, Fubon Financial advanced 2.52 percent, E Sun Financial gathered 1.95 percent, Taiwan Semiconductor Manufacturing Company rallied 2.09 percent, United Microelectronics Corporation spiked 2.96 percent, Hon Hai Precision shed 0.50 percent, Largan Precision climbed 1.05 percent, Catcher Technology improved 1.46 percent, MediaTek soared 3.85 percent, Delta Electronics strengthened 1.30 percent, Novatek Microelectronics accelerated 3.23 percent, Formosa Plastics gained 2.05 percent, Nan Ya Plastics surged 3.09 percent, Asia Cement rose 0.40 percent, Taiwan Cement was up 1.81 percent and First Financial was unchanged. The lead from Wall Street is broadly positive as the major averages opened higher on Monday and mostly remained in the green throughout the day, finishing near session highs.

The Dow surged 423.78 points or 1.31 percent to finish at 32,827.00, while the NASDAQ advanced 89.26 points or 0.85 percent to close at 10,564.52 and the S&P 500 gained 36.25 points or 0.96 percent to end at 3,806.80.

The broader markets benefited from late-day buying for the second straight session, with below average volume potentially exaggerating the upward move.

Earlier in the day, traders seemed reluctant to make significant moves ahead of the U.S. midterm elections later today and the release of consumer price inflation data on Thursday.

The midterm elections will determine whether Democrats maintain control of Congress, while the inflation data could affect the outlook for interest rates.

Crude oil prices saw considerable volatility on Monday amid uncertainty about the outlook for Chinese energy demand due to conflicting reports about the country's COVID-19 policies. After spiking earlier, West Texas Intermediate finished lower by $0.82 or 0.9 percent at $91.79 a barrel. Closer to home, Taiwan will provide October data for imports, exports, trade balance and inflation later today. In September, imports were down 2.4 percent on year and exports fell an annual 5.3 percent for a trade surplus of $5.02 billion. In September, overall inflation was up 0.03 percent on month and 2.75 percent on year.