(RTTNews) – The Taiwan stock market rebounded on Tuesday, one session after snapping the two-day winning streak in which it had collected almost 130 points or 1 percent. The Taiwan Stock Exchange now rests just above the 13,880-point plateau and it may pick up steam on Wednesday.
The global forecast for the Asian markets is upbeat on optimism for economic recovery and hopes for a Covid-19 vaccine. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.
The TSE finished sharply higher on Tuesday following gains from the financial shares and technology stocks.
For the day, the index advanced 162.78 points or 1.19 percent to finish at the daily high of 13,885.67 after moving as low as 13,749.71.
Among the actives, Cathay Financial gained 0.74 percent, while Mega Financial gathered 2.46 percent, CTBC Financial perked 1.31 percent, Fubon Financial advanced 1.13 percent, First Financial collected 0.41 percent, E Sun Financial rose 0.60 percent, Taiwan Semiconductor Manufacturing Company jumped 1.98 percent, United Microelectronics Corporation rallied 2.59 percent, Hon Hai Precision added 0.73 percent, Largan Precision soared 3.72 percent, Catcher Technology climbed 1.86 percent, MediaTek dropped 0.99 percent, Formosa Plastic accelerated 2.82 percent, Taiwan Cement was up 0.58 percent and Asia Cement was unchanged.
The lead from Wall Street is firm as stocks opened solidly higher on Tuesday and remained in the green throughout the session, offsetting losses from the previous day.
The Dow added 185.28 points or 0.63 percent to finish at 29,823.92, while the NASDAQ spiked 156.37 points or 1.28 percent to end at 12,355.11 and the S&P 500 gained 40.82 points or 1.13 percent to close at 3,662.45.
Continued optimism about a potential coronavirus vaccine also generated buying interest, with Pfizer (PFE) and BioNTech (BNTX) applying to the European Medicines Agency for conditional marketing authorization of their vaccine.
In testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell called the economic outlook “extraordinarily uncertain” and noted it will depend, in large part, on the success of efforts to keep the coronavirus in check.
In economic news, the Institute for Supply Management noted a slowdown in the pace of growth in U.S. manufacturing activity last month. Also, the Commerce Department showed a bigger than expected increase in construction spending in October.
Crude oil prices drifted lower Tuesday following the decision of OPEC and its allies to delay a discussion on output cuts by a couple of days. West Texas Intermediate Crude oil futures for January ended down by $0.79 or 1.7 percent at $45.55 a barrel.