FX.co ★ Taiwan Bourse Expected To Return To The Upside From Holiday

Before the extended Lunar New Year break, the Taiwan stock market improved in three subsequent sessions, amassing over 200 points or increasing by 1.2%. The Taiwan Stock Exchange is currently verging on the 18,100-point level and might see further growth on Thursday.

The global view of Asian markets is largely optimistic, considering the prior selling session seemed overly excessive. European and U.S. markets were up, and it's anticipated that Asian markets might exhibit a similar pattern.

On February 5, the TSE showed slight advancement, influenced by diverse performance of tech stocks and instability of financial stocks. On the day, the index rose by 36.14 points or 0.20% to close at 18,096.07 after fluctuating between 17,992.17 and 18,115.80.

Examining active stocks, Cathay Financial dropped by 0.45%, Mega Financial fell by 0.79%, CTBC Financial plummeted by 0.53%, and First Financial went down by 0.74%. Meanwhile, Fubon Financial and Taiwan Cement each dipped by 0.31%, and E Sun Financial stumbled by 1.41%. Conversely, Taiwan Semiconductor Manufacturing Company surged by 1.73%, MediaTek improved by 0.11%, and Delta Electronics added 0.52%.

Insights from Wall Street are encouraging, as significant indices opened on a high note on Wednesday and stayed mostly higher, finishing close to session peaks.

The Dow soared by 151.52 points or 0.40% to conclude at 38,424.27, while the NASDAQ surged by 203.55 points or 1.30% to complete at 15,859.15, and the S&P 500 escalated by 47.45 points or 0.96% to settle at 5,000.62.

Wall Street's bounce back is credited to strategic bargain hunting, as traders perceived Tuesday's severe fall as an opportunity to buy, given the persistent optimism about the market's outlook.

While Tuesday's inflation data, which surpassed expectations, indeed delayed hopes for an interest rate cut, signs of the economy's strength are supposed to continue benefiting the markets in the long run.

Furthermore, the Federal Reserve will likely lower interest rates in the coming months, though traders might have to wait until June.

Oil futures ended lower on Wednesday, concluding a seven-day streak of gains after data exposed a significant rise in crude inventories in the U.S. the preceding week. West Texas Intermediate Crude oil futures for March ended down $1.23 or roughly 1.6% at $76.64 per barrel.