Overbought Taiwan Bourse Nonetheless Called Higher On Monday

(RTTNews) - The Taiwan stock market has finished higher in five straight trading days, rallying more than 1,300 points or 6.4 percent in that span. The Taiwan Stock Exchange now sits just above the 20,780-point plateau and it's got another solid lead for Monday's trade.

The global forecast for the Asian markets is positive on optimism over economic data and easing tariff concerns. The European and U.S. bourses were sharply higher and the Asian markets also figure to open to the upside.

The TSE finished sharply higher on Friday following gains from the technology stocks and the plastics companies.

For the day, the index surged 552.61 points or 2.73 percent to finish at the daily high of 20,787.64 after trading as low as 20,534.08.

Among the actives, Cathay Financial eased 0.16 percent, while Mega Financial lost 0.40 percent, CTBC Financial spiked 2.42 percent, First Financial shed 0.59 percent, E Sun Financial skidded 1.06 percent, Taiwan Semiconductor Manufacturing Company accelerated 4.63 percent, United Microelectronics Corporation climbed 1.00 percent, Hon Hai Precision soared 4.24 percent, Largan Precision stumbled 2.21 percent, Catcher Technology jumped 1.84 percent, MediaTek tanked 3.70 percent, Delta Electronics surged 6.15 percent, Novatek Microelectronics sank 0.77 percent, Formosa Plastics rallied 2.35 percent, Nan Ya Plastics improved 0.82 percent, Asia Cement fell 0.33 percent and Fubon Financial was unchanged.

The lead from Wall Street is firm as the major averages opened sharply higher on Friday and remained solidly in the green throughout the trading day.

The Dow surged 564.47 points or 1.39 percent to finish at 41,317.43, while the NASDAQ rallied 266.99 points or 1.51 percent to close at 17,977.73 and the S&P 500 spiked 82.53 points or 1.47 percent to end at 5,686.67.

For the week, the tech-heavy NASDAQ soared 3.4 percent, while the Dow jumped 3.0 percent and the S&P improved 2.9 percent.

The rally on Wall Street followed the release of a closely watched Labor Department report showing U.S. job growth far exceeded economist estimates in the month of April.

Buying interest was also generated in reaction to indications China is open to trade talks with the U.S., with a spokesperson for China's Ministry of Commerce saying U.S. officials have "repeatedly expressed their willingness to negotiate with China on tariffs."

Crude oil showed a significant move back to the downside on Friday on concerns that OPEC would accelerate production, which did indeed happen over the weekend. West Texas Intermediate crude for June delivery tumbled $0.95 or 1.6 percent to $58.29 a barrel. Crude plunged 7.5 percent for the week.