FX.co ★ Higher Open Expected For Taiwan Stock Market

The Taiwan stock market has experienced gains over the past two sessions, advancing nearly 400 points, or 1.8%, in total. Currently, the Taiwan Stock Exchange (TSE) rests just below the 22,950-point mark and may see further support on Tuesday.

The global outlook for Asian markets is positive, driven by optimism, despite weak oil prices that have limited the extent of gains. European and U.S. markets posted gains, suggesting that Asian markets might follow suit.

On Monday, the TSE recorded slight gains, buoyed by financial and technology stocks. The index rose by 44.05 points, or 0.19%, to close at the daily low of 22,948.37, after peaking at 23,172.43 during the session.

Among active stocks, Cathay Financial gained 0.75%, while Mega Financial and United Microelectronics Corporation also rose by 1.01%. First Financial improved by 0.72%, Fubon Financial advanced 1.34%, and E Sun Financial saw a 1.28% rise. Conversely, Taiwan Semiconductor Manufacturing Company fell by 0.96%. Hon Hai Precision surged 3.69%, Largan Precision climbed 2.94%, Catcher Technology increased by 0.50%, while MediaTek dropped 2.29%. Delta Electronics saw a slight dip of 0.13%, Novatek Microelectronics increased 2.29%, Nan Ya Plastics moved up 0.87%, while Asia Cement, CTBC Financial, and Formosa Plastics remained unchanged.

Wall Street provided positive cues, with major averages opening higher on Monday and maintaining gains throughout the trading day.

The Dow Jones Industrial Average surged 440.06 points, or 0.99%, closing at 44,736.57. The NASDAQ Composite gained 51.19 points, or 0.48%, finishing at 20,220.36, while the S&P 500 rose 18.03 points, or 0.30%, to end at 5,987.37.

The market responded positively to news that President-elect Donald Trump plans to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is perceived as supportive of the equity markets and advocates for deficit reduction. He also suggests that Trump's proposed tariff increases be phased in gradually to mitigate inflationary impacts.

However, trading enthusiasm diminished as the day progressed, with investors cautious ahead of the release of significant economic reports expected in the coming days.

Oil prices fell sharply on Monday, pressured by reports indicating that Israel and Hezbollah are likely to reach a cease-fire agreement soon. West Texas Intermediate Crude oil futures for January declined by $2.30, or 3.2%, settling at $68.94 a barrel.