The Taiwan stock market saw a notable rebound on Tuesday, closing up 1.21% at 20,466.57 after a two-day decline. This surge was driven primarily by gains in technology and steel sectors, despite mixed performances from financial stocks and losses in plastics and cement. However, market sentiment remains cautious as global concerns over interest rates loom, with the TSE expected to face downward pressure again on Wednesday.

The broader Asian markets are likely to follow the negative lead from Wall Street, where major indices fell due to uncertainty surrounding the Federal Reserve’s interest rate outlook, exacerbated by recent U.S. inflation and manufacturing data. Treasury yields have surged, reaching a four-month high, reflecting increasing investor apprehension. Additionally, oil prices have climbed to a five-month high, driven by robust manufacturing activity in the U.S. and China.

Market professionals should watch for potential volatility in the Taiwan market as external pressures mount, particularly from interest rate developments and global economic indicators.

Source: nasdaq.com