Tech shares expected to lift Taiwan stock market
The Taiwan stock market has moved lower in two straight sessions, tumbling almost 550 points or 3.7 percent along the way. The Taiwan Stock Exchange now rests just above the 15,175-point plateau although it’s due for support on Friday. The global forecast for the Asian markets is mixed to higher, with bargain hunting expected to lift the oversold bourses – particularly among the technology shares. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.
The TSE finished sharply lower on Thursday following wild volatility among the technology stocks, while the financials and cement companies also ended under pressure. For the day, the index retreated 171.31 points or 1.12 percent to finish at 15,176.44 after trading between 15,102.40 and 15,380.28. Among the actives, Mega Financial dipped 0.14 percent, while Fubon Financial dropped 0.97 percent, First Financial eased 0.19 percent, E Sun Financial jumped 1.55 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.82 percent, United Microelectronics Corporation plunged 4.76 percent, Hon Hai Precision declined 1.37 percent, Largan Precision advanced 0.94 percent, Catcher Technology climbed 1.22 percent, MediaTek plummeted 14.62 percent, Delta Electronics soared 3.31 percent, Nan Ya Plastics fell 0.24 percent, Asia Cement declined 1.49 percent, Taiwan Cement slumped 1.27 percent and Cathay Financial, CTBC Financial and Formosa Plastics were unchanged.
Sensex raises 462 pts
Indian indices on Friday closed higher, led by good buying support in telecom, financial and auto stocks. The Sensex gained 462.26 points, or 0.88 percent, to close at 52,727.98, while Nifty50 added 142.60 points to end at 15,699.25. Sectorally, telecom, bank, auto, and financial stocks performed well, while IT stocks dragged. On the 30-stock index, M&M, Bajaj Finance, IndusInd Bank, and HUL were the top performers, while TechM, Infosys, TCS, and HCL were among the biggest losers. On the Nifty50 index, M&M, Hero MotoCorp, and IndusInd Bank registered the biggest gains, while TechM, Infosys, and Apollo Hospitals were the biggest laggards.
Tokyo shares close higher
Tokyo shares closed higher on Friday after rallies on Wall Street and gains in chip-related shares supported the market. The benchmark Nikkei 225 index gained 1.23 percent, or 320.72 points, to end at 26,491.97, while the broader Topix index rose 0.81 percent, or 14.98 points, to 1,866.72. The dollar fetched 134.79 yen in Asian trade, against 134.94 yen in New York on Thursday. Advantest, a major producer of tools to build semiconductors, jumped 3.50 percent to 7,390 yen while chip-making equipment manufacturer Tokyo Electron soared 3.98 percent to 46,730 yen. Shipping shares were also higher with Nippon Yusen rising 2.00 percent to 9,140 yen and Mitsui OSK Lines growing 3.91 percent to 3,025 yen. Market heavyweight SoftBank Group gained 2.37 percent to 5,224 yen.
CAC 40 down 0.56pc
France stocks were lower after the close on Thursday, as losses in the Basic Materials, Oil & Gas and Industrials sectors led shares lower. At the close in Paris, the CAC 40 declined 0.56 percent, while the SBF 120 index lost 0.69 percent. Falling stocks outnumbered advancing ones on the Paris Stock Exchange by 365 to 177 and 87 ended unchanged. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was unchanged 0.00 percent to 18.96 a new 52-week high. Gold Futures for August delivery was down 0.33 percent or 6.15 to $1,832.25 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August fell 2.22 percent or 2.36 to hit $103.83 a barrel, while the August Brent oil contract fell 1.97 percent or 2.20 to trade at $109.54 a barrel. EUR/USD was down 0.54 percent to 1.05, while EUR/GBP unchanged 0.19 percent to 0.86. The US Dollar Index Futures was up 0.28 percent at 104.28.
Defensive stocks lead rebound in FTSE 100
UK’s FTSE 100 rose on Friday, boosted by gains in defensive stocks at the end of a choppy week, which saw mounting fears around hawkish central banks, weak economic data and rising risks of a recession. The blue-chip index inched up 0.4 percent, with healthcare stocks that tend to decouple from economic cycles, rising the most. The domestically focussed FTSE 250 was up 0.4 percent. The FTSE 100 was set to end the week largely flat, while the mid-cap index was on pace for a weekly loss of 1 percent. Data showed British retail sales volumes slid by 0.5 percent in May, showing that consumers cut back on shopping in the face of fast-rising inflation last month, and an increase in sales in April was revised down sharply. Also, separate data showed consumer confidence in the UK hit a record low this month. Among stocks, Ultra Electronics gained 12.6 percent after Britain moved forward on approving the acquisition of the defence firm by rival Cobham, after having raised security concerns over the planned transaction.
S&P 500 is back above 3,800
U.S. stocks remain in bounce mode after the S&P 500 index tumbled last week to its lowest finish since December 2020, but many chart watchers remain unconvinced the uptick will prove to be anything more than another bear-market rebound. What would it take to change their minds? The 3,800 level on the index, which has so far proven to be stiff resistance, is in focus.
“Since the beginning of last week, 3,800 has become a new ceiling for the S&P 500 as sellers have repeatedly stepped in and overwhelmed the tentative, weakhanded bids,” said Tom Essaye, founder of Sevens Report Research, in a Thursday note. The S&P 500 SPX, +0.95 percent was up 0.1 percent at 3,763 in choppy trade Thursday afternoon, and on track for a 2.4 percent weekly gain. The Dow Jones Industrial Average DJIA, +0.64 percent was down around 90 points, or 0.3 percent, on track for a 1.7 percent weekly advance. The price action around 3,800 is in keeping with the large-cap benchmark’s bear-market slide this year, Essaye observed.