Technology firms and plastics manufacturers led the way, offsetting a slide in financial stocks. Crude oil’s drop, triggered by eased tensions in the Middle East, also helped lift risk appetite.
The broader market rally came as U.S. stocks surged to new highs. The NASDAQ rose over 500 points, while the S&P 500 and the Dow both gained more than a percent. Investors cheered a strong manufacturing report and the promise of cooler geopolitical tensions after U.S. President Donald Trump pulled back a potential attack on Iran.
West Texas Intermediate crude oil prices fell sharply, ending at $79.90 per barrel, a loss of nearly $5. That drop came after Trump called off an operation that had rattled energy markets. While he claimed talks with Iran were starting the same day, officials in Tehran said no such moves were on the table. Oil traders shifted quickly, and the relief flowed to equity markets.
The Institute for Supply Management reported a stronger-than-expected manufacturing reading, adding another leg to the U.S. rally. With more confidence in both economic data and regional stability, the TSE is seen opening higher again on Tuesday, as long as the global mood stays firm.
The Taiwan stock market on Monday ended the five-day winning streak in which it had jumped more than 770 points or 3.4 percent. The Taiwan Stock Exchange now rests just beneath the 23,530-point plateau although it may bounce higher again on Tuesday.
The TSE finished slightly lower on Monday following losses from the financial shares and plastics companies, while the technology sector was mixed. For the day, the index dipped 24.25 points or 0.10 percent to finish at 23,529.64 after trading between 23,306.66 and 23,563.80.
The lead from Wall Street is cautiously optimistic as the major averages opened higher on Monday and spent most of the day hugging line before finishing with mild gains that were all fresh record closing highs. The Dow jumped 304.14 points or 0.69 percent to finish at 44,294.13, while the NASDAQ rose 11.99 points or 0.06 percent to close at 19,298.76 and the S&P 500 added 5.81 points or 0.10 percent to end at 6,001.35.
Oil futures closed sharply lower on Monday, weighed down by a stronger dollar and concerns about demand. West Texas Intermediate Crude oil futures for December ended down $2.34 or 3.6 percent at $68.04 a barrel.