FX.co ★ Taiwan Shares May Bounce Higher Again On Tuesday

The Taiwan stock market experienced a decline on Monday, reversing the gains made after breaking a four-day losing streak where it dropped approximately 850 points, or 3.6 percent. The Taiwan Stock Exchange is now positioned just below the 22,550-point mark, with potential for further support anticipated on Tuesday.

The outlook for Asian markets is cautiously positive, with a particular emphasis on advances in technology and oil stocks expected to drive growth. The European and American markets ended mostly higher, suggesting that Asian exchanges may open on an upward trend.

On Monday, the Taiwan Stock Exchange witnessed a modest decrease, reflecting mixed performances within the financial and technology sectors.

For the day, the index fell by 196.23 points, or 0.86 percent, concluding at 22,546.54. The trading range during the day was between 22,503.69 and 22,781.77. Among active stocks, Cathay Financial edged up by 0.15 percent, Mega Financial increased by 1.15 percent, and First Financial rose by 1.28 percent. Conversely, Fubon Financial dropped by 1.32 percent, while E Sun Financial rose by 1.12 percent. Taiwan Semiconductor Manufacturing Company declined by 0.97 percent; United Microelectronics Corporation slightly increased by 0.22 percent; Hon Hai Precision decreased by 2.17 percent, and Largan Precision fell by 3.10 percent. Catcher Technology saw an increase of 1.24 percent, whereas MediaTek fell by 2.36 percent. Delta Electronics gained 0.13 percent, Novatek Microelectronics strengthened by 1.44 percent, Formosa Plastics surged by 5.98 percent, and Nan Ya Plastics soared by 4.21 percent. Asia Cement declined by 2.06 percent, with CTBC Financial remaining unchanged.

The Wall Street narrative suggests a slight upward movement. Despite the major averages opening with mixed signals on Monday, maintaining a narrow trading range, they ended with mixed results.

The Dow Jones Industrial Average decreased by 55.39 points, or 0.13 percent, closing at 43,389.60. In contrast, the NASDAQ increased by 111.69 points, or 0.60 percent, finishing at 18,791.81, and the S&P 500 rose by 23.00 points, or 0.39 percent, ending at 5,893.62.

Strength on Wall Street was attributed to bargain hunting, as traders attempted to acquire stocks at reduced prices following a significant decline last week amid interest rate concerns.

In U.S. economic developments, the National Association of Home Builders reported a substantial improvement in homebuilder confidence in November, reaching its highest level since April.

Oil prices rose on Monday due to concerns about a potential supply shortage resulting from intensified conflict in the Russia-Ukraine war, coupled with a weaker dollar contributing to the increase. West Texas Intermediate Crude oil futures for December saw a rise of $2.14, or 3.2 percent, closing at $69.16 a barrel.