Renewed Selling Pressure Expected For Taiwan Stock Market

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(RTTNews) – The Taiwan stock market moved higher again on Monday, one session after snapping the four-day winning streak in which it had jumped almost 500 points or 3 percent. The Taiwan Stock Exchange now sits just beneath the 16,860-point plateau although it’s likely to head south again on Tuesday.

The global forecast for the Asian markets suggests mild consolidation amidst a lack of catalysts, with support from crude oil prices limiting the downside. The European and U.S. markets were slightly lower and the Asian bourses are also tipped to open in the red.

The TSE finished slightly higher on Monday as gains from the financials were capped by weakness from the technology stocks.

For the day, the index rose 5.60 points or 0.03 percent to finish at 16,859.70 after trading between 16,793.54 and 16,979.35.

Among the actives, Cathay Financial spiked 3.28 percent, while Mega Financial collected 0.32 percent, CTBC Financial gathered 1.39 percent, Fubon Financial rallied 2.84 percent, First Financial rose 0.23 percent, E Sun Financial was up 0.19 percent, Taiwan Semiconductor Manufacturing Company dropped 0.82 percent, United Microelectronics Corporation climbed 1.13 percent, Hon Hai Precision added 0.42 percent, Largan Precision shed 0.66 percent, Catcher Technology tanked 2.67 percent, MediaTek plunged 3.90 percent, Asia Cement perked 0.21 percent, Taiwan Cement advanced 0.32 percent and Formosa Plastic was unchanged.

The lead from Wall Street is soft as the major opened in the red on Monday and largely remained that way, finishing with modest losses.

The Dow shed 55.20 points or 0.16 percent to finish at 33,745.40, while the NASDAQ lost 50.19 points or 0.36 percent to end at 13,850.00 and the S&P 500 eased 0.81 points or 0.02 percent to close at 4,127.99.

The lower open on Wall Street came on concerns about a new wave of coronavirus cases and lockdown measures, although the surging number of vaccinations limited the downside for the markets.

Also providing support, Federal Reserve Chairman Jerome Powell reiterated on Sunday that the central bank wants to see inflation rise about its 2 percent target for an extended period before the monetary policy committee moves to raise interest rates.

Crude oil prices moved higher on Monday as progress in coronavirus vaccination rollout and reports about an attack on Saudi Arabian oil facilities helped lift oil prices. West Texas Intermediate Crude oil futures for May ended up $0.38 or 0.6 percent at $59.70 a barrel.