Taiwan Stock Market Recovers from Friday's Decline on Friday
The global financial landscape saw a positive shift on Monday, as markets opened upbeat following the U.S.-EU trade agreement. This optimism stems from the anticipated increased trade flows, tariff reductions, and supply chain cooperation that could have a significant impact on Asian markets, particularly those integrated in technology and manufacturing sectors.
The S&P 500 gained 25.29 points or 0.40 percent, finishing at 6,388.64, marking a continuation of the positive lead from Wall Street. The NASDAQ Composite added 50.32 points or 0.24 percent, ending at 21,108.32, and the Dow Jones Industrial Average (DJIA) increased by 208.02 points or 0.47 percent, closing at 44,901.92.
The U.S.-EU deal, which sets a new 15% tariff ceiling on EU exports to the U.S., down from potential 30% rates, covers sectors such as cars, pharmaceuticals, and semiconductors. It also includes large-scale purchases and investments that could boost global economic growth and demand for Asian exports.
The Taiwan Stock Exchange (TSE) ended Friday's trading with a decrease of 0.04%, finishing at 23,364.38 points. However, the TSE is expected to bounce higher again on Monday, following the upbeat global market response.
The TSE's decline on Friday was due to losses from technology stocks and mixed performances from financial and plastics companies. Among the active stocks, Cathay Financial, Mega Financial, First Financial, E Sun Financial, Hon Hai Precision, Largan Precision, Delta Electronics, Novatek Microelectronics, Formosa Plastics, Nan Ya Plastics, Asia Cement, Catcher Technology, MediaTek, United Microelectronics Corporation, CTBC Financial, Fubon Financial, and Taiwan Semiconductor Manufacturing Company showed varying performances, with some rising and others falling.
The decrease in crude oil prices is due to reports that the U.S. might allow partners of Venezuela's state-run PDVSA to resume operations, sparking concerns of over-supply. Crude oil fell on Friday, with West Texas Intermediate crude for September delivery closing down $0.88 or 1.33 percent, at $65.15 per barrel.
The European markets were mixed, and the U.S. bourses were up, and Asian markets are expected to follow the latter's lead. Several trading partners are attempting to reach an agreement with the U.S. to avoid high tariffs on their exports to the U.S. from August 1.
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The U.S.-EU trade agreement, with its lower tariffs and potential for increased trade flows, could result in increased financing opportunities for Asian companies, particularly in the technology and manufacturing sectors. The positivity from Wall Street, culminating in gains for the S&P 500, NASDAQ Composite, and Dow Jones Industrial Average, is expected to extend to Asian markets such as the Taiwan Stock Exchange (TSE), which may observe a rebound on Monday.
