Strong U.S. Rebound Lifts Taiwan Stocks at Open
U.S. stocks rebounded higher on Monday, with funds returning to technology shares, led higher by Goldman Sachs and Caterpillar, the Dow Jones Industrial Average rose 1104.02 points or 2.15% to close at 52389.75 points, reclaiming the closing level of the U.S. midterm election voting day. The Nasdaq Composite rose 673.71 points or 2.74% to close at 25253.14 points. The S&P 500 rose 173.08 points or 2.35% to close at 7549.94 points, posting its best single-day performance since April 8. The Philadelphia Semiconductor Index surged 643.68 points or 6.86% to close at 10033.93 points. Taiex futures in the night session strengthened after volatility, reaching as high as 42657 points intraday, and closed up 1064 points or 2.57% at 42542 points. Taipei stocks opened on the 10th up 468.63 points at 42130.33 points, with gains later expanding to over 1,000 points, moving above 42,000 points.
All Heavyweights Move Higher
Market leader TSMC opened up NT$30 at NT$2,265. TSMC futures closed up NT$30 or 1.34% after hours at NT$2,262. MediaTek opened up NT$215 at NT$3,940. Delta Electronics opened at the limit-up price of NT$1,275, with all heavyweight stocks moving higher and lifting the broader market.
Small and Mid-Cap Stocks Rise Together
As the broader market opened higher, small and mid-cap stocks rose together, with the OTC index opening up 3.44 points at 325.41 points. Strong high-volume stocks at the open today were AUO, UMC, Innolux, Nan Ya, and PSMC. Weak high-volume stocks at the open were CTBC Financial, Taichung Bank, and Anbogen*, with bullish sentiment dominating the market.
Lower Oil Prices as Focus Turns to Inflation Data
U.S. President Trump said the likelihood of ordering a large-scale strike on Iran was very low, raising market expectations for an easing of tensions over Iran, and international oil prices moved lower. U.S. West Texas Intermediate crude futures fell 4.38% to close at US$86.85 per barrel. Brent crude futures fell 5.85% to close at US$92.57 per barrel. On the economic data front, the U.S. will release October consumer price index data on Tuesday and producer price index data on Friday, which markets will use to assess the Federal Reserve's interest rate path in December.