The Taiwan stock market is set to rebound on Thursday after finishing lower in two of three sessions following a strong four-day winning streak.
That winning streak had seen the Taiwan Stock Exchange rally more than 1,550 points, or 3.4 percent, before momentum stalled.
The TSE now sits just above the 46,160-point plateau, with traders watching closely for signs of a sustained recovery.
Wednesday’s session was a painful one, as the index plunged 784.00 points or 1.67 percent to finish at 46,164.72.
The index traded between 46,164.72 and 46,946.60 during the session, with losses driven by weakness in the technology and manufacturing sectors.
The global forecast for Asian markets is mixed to higher, underpinned by optimism over the outlook for interest rates heading into Thursday’s session.
Wall Street provided a positive lead, with major averages opening higher on Wednesday and remaining firmly in the green throughout the trading day, ending near session highs.
The Dow jumped 295.07 points or 0.56 percent to finish at 53,061.95, while the NASDAQ added 118.05 points or 0.45 percent to end at 26,217.83.
The S&P 500 gained 35.13 points or 0.46 percent to close at 7,666.60, recovering from what had been its lowest levels in nearly a month.
The strength on Wall Street reflected bargain hunting following the recent slump, with early buying interest also generated by a pullback in treasury yields.
A report from payroll processor ADP showing weaker than expected private sector job growth helped ease concerns about the trajectory of interest rates.
Traders are increasingly hopeful that signs of weakness in the labor market will lead the Federal Reserve to refrain from raising interest rates later this month, even amid lingering inflation concerns.
Crude oil prices also moved sharply higher on Wednesday after the U.S. commenced its second round of attacks against Iran, escalating geopolitical tensions in the region.
West Texas Intermediate crude for October delivery rose $0.97 or 1.08 percent to settle at $91.19 per barrel, adding an inflationary dimension to an already complex market environment.
Asian markets are expected to take their cue from Wall Street’s positive close rather than from Europe’s softer session as Thursday trade gets underway.
