FX.co ★ Taiwan Stock Market May See Profit Taking On Friday

After the Lunar New Year holidays, the Taiwan stock market resumed its positive progression for a fourth consecutive session, noting an increase of over 750 points or 4.2%. The Taiwan Stock Exchange is currently hovering just below the 18,650-point mark, and investors are expected to make profit gains this Friday.

Global economic predictions for Asian markets are buoyant due to disappointing U.S. economic data, which solidifies the argument for a potential interest rate reduction in June. This optimism is mirrored by European and U.S. markets that have kickstarted on a positive note, which is anticipated to have a similar effect on Asian markets.

On Thursday, there was a significant climb in the Taiwan Stock Exchange, supported primarily by the technology sector, financial entities, and plastic manufacturing industries. The TSE index escalated by 548.50 points or 3.03%, ending at 18,644.57 having fluctuated between the 18,550.86 and 18,725.47 points during the day.

Among the active players, Cathay Financial, Mega Financial, CTBC Financial, First Financial, Fubon Financial, and E Sun Financial made gains. There was also a staggering rise of 7.89% by Taiwan Semiconductor Manufacturing Company. Other companies, such as United Microelectronics Corporation, Largan Precision, Catcher Technology, and MediaTek, also saw an uptick. However, Delta Electronics, Asia Cement, Taiwan Cement and China Steel registered a decline, whilst CK Hutchison, Novatek Microelectronics, and Formosa Plastics remained stable.

Wall Street's lead reveals a positive picture as major indices began mixed on Thursday but gradually scaled up, ending the day on a positive note. After a report by the Commerce Department revealed a larger than expected drop in U.S. retail sales in January, there was increased optimism about the potential for interest rate changes. Furthermore, the Federal Reserve's report indicating that industrial production in the U.S. had slightly reduced in January backed up this trend.

Crude oil futures experienced a rise on Thursday considering the weakened dollar following subpar retail sales data, raising expectations of the Federal Reserve applying a rate cut in June. As a result, West Texas Intermediate Crude oil futures for March experienced a boost of $1.39 or 1.8% at $78.03 per barrel.