Additional Support Predicted For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has moved higher in three straight sessions, advancing almost 2,220 points or 5 percent to a fresh record closing high. The Taiwan Stock Exchange now sits just beneath the 41,140-point plateau and it may add to its winnings again on Thursday.

The global forecast for the Asian markets is positive on hopes for an end to hostilities in the Middle East. The European and U.S. markets were sharply higher and the Asian bourses are expected to follow that lead.

The TSE finished modestly higher again on Wednesday following gains from the financial shares and technology stocks.

For the day, the index advanced 369.56 points or 0.91 percent to finish at 41,138.85 after trading between 40,616.28 and 41,575.84.

Among the actives, Cathay Financial collected 0.66 percent, while Mega Financial climbed 1.15 percent, CTBC Financial perked 0.15 percent, First Financial expanded 1.41 percent, Fubon Financial added 0.65 percent, E Sun Financial advanced 0.95 percent, United Microelectronics Corporation skyrocketed 9.99 percent, Hon Hai Precision soared 5.22 percent, Largan Precision dropped 0.98 percent, Catcher Technology retreated 1.41 percent, MediaTek surged 8.72 percent, Delta Electronics jumped 2.08 percent, Novatek Microelectronics spiked 5.12 percent, Formosa Plastics slumped 1.17 percent, Nan Ya Plastics fell 0.21 percent, Asia Cement improved 0.72 percent and Taiwan Semiconductor Manufacturing Company was unchanged.

The lead from Wall Street is strong as the major averages opened higher on Wednesday and continued to pick up steam as the day progressed, ending at session highs.

The Dow spiked 612.34 points or 1.24 percent to finish at 49,910.59, while the NASDAQ rallied 512.82 points or 2.02 percent to end at 25,838.94 and the S&P 500 jumped 105.90 points or 1.46 percent to close at 7,365.12.

The rally on Wall Street came amid optimism about an end to the conflict in the Middle East after reports said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding.

Adding to the optimism about a peace deal, President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.

On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. jumped more than expected in April.

Crude oil prices went into freefall after Trump indicated the U.S. and Iran may reach a deal soon. West Texas Intermediate crude for June delivery was down $7.83 or 7.66 percent at $94.44 per barrel.

Closer to home, Taiwan will release April figures for consumer prices later today; in March, overall inflation was up 0.19 percent on month and 1.20 percent on year.