Taiwan Shares Predicted To Bounce Higher On Monday
(RTTNews) – The Taiwan stock market on Friday halted the five-day winning streak in which it had jumped more than 640 points or 3.5 percent. The Taiwan Stock Exchange now sits just beneath the 17,150-point plateau although it’s expected to find renewed support again on Monday.
The global forecast for the Asian markets is positive in response to U.S. employment data and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.
The TSE finished modestly lower on Friday following losses from the financial shares, technology stocks and cement companies.
For the day, the index dropped 98.79 points or 0.57 percent to finish at 17,147.41 after trading between 17,084.49 and 17,225.06.
Among the actives, Cathay Financial retreated 1.43 percent, while CTBC Financial slid 0.66 percent, Fubon Financial sank 0.95 percent, Taiwan Semiconductor Manufacturing Company eased 0.17 percent, United Microelectronics Corporation plunged 3.64 percent, Hon Hai Precision advanced 0.90 percent, Largan Precision dropped 0.82 percent, Catcher Technology lost 0.55 percent, MediaTek shed 0.41 percent, Asia Cement skidded 0.77 percent, Taiwan Cement was down 0.76 percent and Delta Electronics, First Financial, E Sun Financial, Mega Financial and Formosa Plastic were unchanged.
The lead from Wall Street is solid as the major averages opened firmly higher on Friday and picked up steam as the session progressed.
The Dow climbed 179.39 points or 0.52 percent to finish at 34,756.39, while the NASDAQ jumped 199.99 points or 1.47 percent to end at 13.814.49 and the S&P 500 advanced 37.04 points or 0.88 percent to close at 4,229.89. For the week, the Dow rose 0.7 percent, the NASDAQ added 0.5 percent and the S&P rose 0.6 percent.
The strength on Wall Street came after the Labor Department report showed job growth in the U.S. reaccelerated in May but fell short of estimates, while the jobless rate fell to 5.8 percent.
Traders viewed the weaker than expected job growth as a Goldilocks situation, where the economy is expanding but not fast enough to encourage the Federal Reserve to tighten monetary policy.
Crude oil prices moved higher Friday amid rising hopes for increased demand and the recent OPEC decision to gradually increase crude output. West Texas Intermediate Crude oil futures for July ended up $0.81 or 1.2 percent at $69.62 a barrel, the highest settlement since October 2018.