FX.co ★ Rally May Stall For Taiwan Stock Market

In the last three sessions, Taiwan's stock market has substantially improved, spiking upwards by over 270 points, or a 1.4% increase. Currently, the Taiwan Stock Exchange rests just below the 18,950-point mark, hinting at potential profit-taking scenarios for investors on Tuesday.

Global projections for Asian markets point towards caution due to significant economic data due later this week. The European markets yielded mixed results, with US markets taking a hit. The Asian markets are expected to follow this trend.

On Monday, the Taiwan Stock Exchange (TSE) had a modest upward trend, led by plastic sector gains. The financial and technology sectors exhibited mixed performances. The index concluded the day 58.86 points higher, a 0.31% increase to close at 18,948.05 points.

Noteworthy market shifts included Cathay Financial, which declined by 0.34%, Mega Financial, which dipped by 0.39%, and CTBC Financial, which advanced by 0.69%. Unfavorable performances were seen by First Financial, down by 0.92% and United Microelectronics Corporation, which dropped by 0.31%. On the opposing end, Largan Precision skyrocketed 3.14%, MediaTek strengthened by 1.36%, and Delta Electronics progressed by 0.85%.

Wall Street opened modestly on Monday but eventually incurred mild losses. The Dow dropped 62.30 points or 0.16% to end at 39,069.23. NASDAQ fell 20.57 points or 0.13% to close at 15,976.25 and the S&P 500 lost 19.27 points or 0.38% to conclude at 5,069.53.

These hesitant actions amongst traders are likely attributed to digesting last week's gains, which pushed the Dow and S&P to new all-time highs. Market participants might also be treading lightly in anticipation of crucial inflation data due from Germany, France, Spain, and the United States later this week.

In economic updates, the US Commerce Department noted a sustained comeback in new home sales in January, albeit the boost fell short of expectations.

Crude oil prices showed resilience on Monday, recovering from early losses due to ongoing Houthi militant assaults on the Red Sea path that escalated supply concerns. The West Texas Intermediate Crude oil futures for April concluded with a $1.09 or 1.4% increase, settling at $77.58 a barrel.

Finally, Taiwan is expected to release export order results for January and Q4 current account data. Predictions point towards a 3.6% annual dip in export orders, following a disappointing 16% drop in December. The Q3 current account surplus stood at $27.22 billion.