TAIPEI (XFN-ASIA) - Share prices are expected to open higher, tracking Wall
Street's gains overnight after better-than-expected US economic data and the
Federal Reserve's move on Wednesday to cut its key interest rate by another 25
basis points.
Investors will also take comfort from repeated assurances by president-elect
Ma Ying-jeou that the appointment of a pro-independence politician as head of
Taiwan's China policy body will not come in the way of improving ties with the
mainland, dealers said.
On Wednesday, the weighted index closed up 28.18 points at 8,919.92 on
turnover of 148.44 bln twd. The market was closed yesterday for Labor Day.
"The situation looks promising as we should have a boost from both within
and outside," said an analyst with a local securities house who requested
anonymity.
As concerns over the US economy ease, investors will refocus on the prospect
that Taiwan and China are on track to improve relations despite recent concerns
triggered by a cabinet appointment, he said.
The analyst said concerns regarding the appointment of Lai Shin-yaun, a
former legislator of the Taiwan Solidarity Union that supports independence from
the mainland, as head of the Mainland Affairs Council have been overblown.
"Ma has the final say and he is not going to offend his supporters who have
made him president on the promise of peace and prosperity across the Taiwan
Strait," he said.
But the market may be kept in check today as investors will refrain from
pushing prices too much ahead of the weekend, the analyst said.
(1 usd = 30.40 twd)
philip.wang@afxasia.com
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