Sun, Apr 15, 2018 - Page 14 News List

TAIEX edges up toward 11,000 points

‘REMARKABLE’:Most Asian markets rose after US President Donald Trump soothed worries about military action in Syria and ordered aides to explore rejoining the TPP

Staff writer, with CNA and AFP

Local shares on Friday closed higher at 10,965.39, setting them up to tackle the 11,000-point threshold next week, analysts said.

The TAIEX on Friday closed up 10.1 points, or 0.09 percent, on turnover of NT$121.99 billion (US$4.16 billion). That was an increase of 1.3 percent from a close of 10,821.53 on April 3, the last day of trading before the Tomb Sweeping Day holiday.

The index immediately traded higher after the bourse opened, and fluctuated between a high of 10,988.23 and a low of 10,938.37 throughout the day.

The main force behind the uptick came from stocks in the optoelectronics sector, which rose by 2.37 percent, the electrical and cable sector, which rose 0.71 percent, and the semiconductor sector’s 0.29 percent increase.

Shares of Largan Precision Co (大立光), a smartphone camera lenses supplier to Apple Inc, breached the NT$3,500 mark, prompting the steady increase of stock prices among other companies in the sector.

Meanwhile, gains by producers of printed circuit boards were responsible for an increase in the electrical and cable sector.

Elsewhere in Asia on Friday, markets mostly rose as US President Donald Trump soothed concerns about military action in Syria while also sparking hopes the US could rejoin a massive Pacific-wide free-trade pact.

Trump on Wednesday sent shudders across trading floors when he warned “missiles will be coming” to Syria in response to an alleged chemical attack by the Russia-backed regime, fueling fears of a standoff between the major powers.

However, he tempered the rhetoric a day later, suggesting that he might hold off on an imminent strike while he holds talks with France and Britain on how to deal with the crisis.

As investors digested the remarks, it emerged that Trump had directed senior aides to explore rejoining the Trans-Pacific Partnership (TPP), which he left on taking office and called a US jobs killer.

The U-turn came as he suggested that the US and China might not eventually impose tariffs on each other’s goods, despite recent tit-for-tat warnings over hundreds of billions of dollars of trade.

That followed Chinese President Xi Jinping’s (習近平) conciliatory speech this week promising to open up China’s economy.

The developments have provided a huge lift to markets, which were sent into turmoil when Trump on Friday last week threatened fresh tariffs on a vast array of Chinese imports, fanning fears of a trade war between the world’s top two economic powers.

Trump on Thursday also said the review of a trade pact with Canada and Mexico was “coming along great.”

“Remarkable. That’s the only thing I can really say in the past 36 hours or so about the change in tone that seems to be emanating from the president and the White House,” AxiTrader chief market strategist Greg McKenna said. “President Trump is walking back from the brink on so many fronts it’s making my head spin.”

“It’s becoming clear his tweets are part of an anchoring approach he uses in negotiations and then eases away from to achieve what he wants. It’s working on many fronts, and he’s eased back on China and Russia/Syria this week, and there was news last night he’s even reconsidering the TPP,” he added.

Tokyo’s Nikkei 225 on Friday rose 118.46 points, or 0.6 percent, to 21,778.74, an increase of 1 percent from 21,567.52 on April 6.

Seoul’s KOSPI on Friday ended up 12.36 points, or 0.5 percent, at 2,455.07, rising 1 percent from a close of 2,429.58 a week earlier.

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