Policy Support Lifts Taiwan Stocks Sharply Higher at Open
Taipei stocks today (9th) opened up 645.64 points at 40,347.28 points, with gains later widening to over 800 points. As stocks fell last week, the National Stabilization Fund announced market intervention, and the Financial Supervisory Commission formally issued short-selling curbs with five rescue measures, with market confidence clearly recovering. In addition, Taipei stock margin balances plunged NT$56.5 billion last Friday, and Taiwan stock index futures night session rose 646 points, both supporting today's higher open, while a broad rebound in U.S. stocks on Friday also lifted market sentiment.
As the broader market opened higher, small and mid-cap stocks rose in tandem, with the OTC index opening up 1.49 points at 305.51 points. Today's strong high-volume stocks at the open were Kworld Computer, NewSoft, Tachia Yung Ho, Leadtek, Taiwan Chinsan; weak high-volume stocks at the open were United Renewable Energy, Motech, GIS-KY, E.SUN Financial, King Yuan Electronics. Heavyweight stocks all strengthened, with TSMC opening up NT$75 at NT$2,210; MediaTek opening up NT$145 at NT$3,535; Delta Electronics opening up NT$75 at NT$1,130.
U.S. Jobs Beat Expectations as Rate-Hike Bets Rise
On economic data, U.S. October nonfarm payrolls rose by 165,000, far above the market estimate of 59,000; the unemployment rate fell from 4.2% to 4.1%, while the market had expected it to stay unchanged. The strong jobs data shows the U.S. economy remains resilient amid sharp volatility in technology stocks, but also gives the Federal Reserve more room to maintain a tight policy stance, strengthening market bets on a Fed rate hike in December. Another report showed consumer sentiment rose to a three-month high in early November, further boosting expectations for a December rate hike. In addition, U.S. Treasury yields and the dollar rose in tandem, with the 10-year Treasury yield rising about 3 basis points to 4.86%.
Three of the four major U.S. stock indexes rose last Friday, with only the Dow Jones falling 237.33 points or 0.46% to 51,285.73 points; the Nasdaq rose 264.43 points or 1.09% to 24,579.43 points; the S&P 500 rose 23.13 points or 0.31% to 7,376.86 points; the Philadelphia Semiconductor Index rose 379.11 points or 4.21% to 9,390.25 points. Taiwan stock index futures night session moved higher, reaching as high as 40,845 points and ending up 646 points or 1.63% at 40,298 points; TSMC futures ended after-hours up NT$40 or 1.88% at NT$2,173.