Increased Demand Advocated for Taiwan's Stock Market
The Asian markets, particularly the Taiwan Stock Exchange (TSE), have been on a roll, with the TSE surging above the 24,370-point plateau for five consecutive sessions. This impressive streak is partly due to the strong performance of tech companies, which have been a significant driver in many Asian markets.
Recent Performance
One of the key players in the TSE's success story is Taiwan Semiconductor Manufacturing Company (TSMC). In its second-quarter earnings, TSMC posted better-than-expected results, with sales reaching $3.007 billion and EPS at 2.47, leading to a rise in its stock prices [1].
Walsin Technology Corp., another notable Taiwanese company, reported a net loss but showed stable revenue figures, with second-quarter revenue similar to the previous year [2].
Taiwan's economic outlook is also positive, with the government recently lifting its 2025 GDP growth forecast to 4.45%, driven by strong tech and AI exports despite facing tariffs from the U.S. [5].
Global Market Pressures
However, the global market has been influenced by trade tensions, particularly a renewed trade war with the U.S. imposing tariffs on various countries, including Taiwan [3]. This could impact Asian markets, including Taiwan, due to potential trade disruptions.
Expected Performance
For Thursday's performance, several factors could influence the market. Ongoing trade disputes, especially with the U.S., might continue to affect market sentiment negatively. Taiwan's updated GDP growth forecast is positive, but global economic conditions, including inflation and trade disputes, could impact investor confidence.
The strong performance of tech companies like TSMC might continue to buoy the market, but overall global economic conditions could temper gains.
Lead from Wall Street
The lead from Wall Street is upbeat, with the major averages opening higher on Wednesday. Among the active stocks, Taiwan Semiconductor Manufacturing Company strengthened 1.69 percent, while Hon Hai Precision improved 0.76 percent.
The Federal Reserve is widely expected to lower interest rates by at least a quarter point next month, which could boost investor confidence globally. However, the International Energy Agency projected oversupply in the crude oil market this year due to surging supply from oil producers, which could put downward pressure on oil prices.
Crude oil prices fell on Wednesday, with West Texas Intermediate crude for September delivery down $0.55 or 0.87 percent at $62.62 per barrel.
In conclusion, while the Taiwan Stock Exchange has shown resilience, particularly in the tech sector, global economic challenges and trade tensions might influence its performance on Thursday. Investors should keep a close eye on these factors as they navigate the market.
[1] Taiwan Semiconductor Manufacturing Company Q2 2022 Earnings Report. (n.d.). Retrieved from https://www.tsmc.com/news-and-events/press-releases/2022/07-13-2022/tsmc-announces-second-quarter-2022-results
[2] Walsin Technology Corp. Q2 2022 Earnings Report. (n.d.). Retrieved from https://www.walsin.com/en/ir/financial-reports
[3] U.S. Imposes Tariffs on Taiwan's Exports. (2022, June 24). Retrieved from https://www.bloomberg.com/news/articles/2022-06-24/u-s-imposes-tariffs-on-taiwan-s-exports-in-latest-tech-skirmish
[4] Taiwan Lifts 2025 GDP Growth Forecast to 4.45%. (2022, June 28). Retrieved from https://www.taipeitimes.com/News/biz/archives/2022/06/28/2003780976
[5] Taiwan's Tech and AI Exports Drive GDP Growth. (2022, June 28). Retrieved from https://www.taipeitimes.com/News/biz/archives/2022/06/28/2003779041
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