FX.co ★ Consolidation Predicted For Taiwan Stock Market

The Taiwan stock market has experienced upward momentum over the past five sessions, accumulating over 770 points, marking a 3.4 percent increase. The Taiwan Stock Exchange, currently positioned just above the 23,550-point level, may face some profit-taking activities on Monday.

The outlook for the Asian markets is mixed as global markets analyze the implications of the U.S. elections. While European markets faced declines, U.S. markets posted gains, suggesting that Asian markets might reflect a combination of these outcomes.

On Friday, the Taiwan Stock Exchange concluded the session with a moderate rise, influenced by varied performances in the financial and technology stock segments. The index advanced 145.07 points, or 0.62 percent, closing at 23,553.89, within a trading range of 23,509.13 to 23,699.70.

In terms of individual stock performance, Cathay Financial fell by 0.43 percent, while Fubon Financial advanced 0.76 percent. E Sun Financial edged up by 0.18 percent, with Taiwan Semiconductor Manufacturing Company seeing a strong rally of 2.35 percent. In contrast, United Microelectronics Corporation dropped 1.06 percent. Hon Hai Precision saw a modest increase of 0.46 percent, whereas Largan Precision dipped 1.28 percent. Catcher Technology experienced a decline of 2.05 percent, MediaTek retreated by 1.92 percent, and Delta Electronics rose slightly by 0.25 percent. Novatek Microelectronics decreased by 1.31 percent, Formosa Plastics fell 2.15 percent, and Nan Ya Plastics slipped 1.04 percent. Asia Cement gained 0.32 percent, while Mega Financial, CTBC Financial, and First Financial remained stable.

On Wall Street, the market sentiment was positive, with major indices opening higher on Friday and closing at fresh record levels with modest gains. The Dow increased by 259.65 points or 0.59 percent, closing at 43,988.99. The NASDAQ moved up by 17.32 points or 0.09 percent, ending at 19,286.78, and the S&P 500 rose by 22.44 points or 0.38 percent, finishing at 5,995.54.

For the week, the NASDAQ surged by 5.7 percent, while the S&P 500 rose by 4.7 percent, and the Dow saw an increase of 4.6 percent. The stock markets benefited from a positive response to former President Donald Trump's significant electoral victory, which is anticipated to be favorable for corporations.

Investors are also weighing the Federal Reserve's expected decision to lower interest rates by a quarter-point. Federal Reserve Chair Jerome Powell emphasized that future rate decisions would not be predetermined but evaluated on a meeting-by-meeting basis.

Oil prices experienced a significant decline on Friday due to concerns about demand projections stemming from a decrease in China's oil imports and dissatisfaction with the scale of China's new stimulus measures. West Texas Intermediate Crude oil futures for December fell by $1.98, or 2.7 percent, settling at $70.38 a barrel, although the contract logged a 1 percent increase over the week.