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Taiwan: Stocks rise ahead of central bank rate review

Wednesday, June 29, 2016 - 11:52
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[TAIPEI] Taiwan stocks rose on Wednesday, lifted by gains in regional markets and ahead of an expected easing by the island's central bank when it meets on Thursday to review benchmark rates.

Taiwan's central bank is likely to cut its policy rate for the fourth straight meeting to a six-year low, as economic growth falters and Brexit risks dampen global trade.

The median forecast of 16 analysts polled by Reuters was for the discount rate to be lowered by 0.125 percentage point to 1.375 per cent, a level last seen in 2010.

As of 0313 GMT, the main TAIEX index rose 0.9 per cent to 8,580.51.

It closed 0.6 per cent higher on Tuesday, snapping a three-session losing streak on investor stress around the Brexit vote.

The electronics subindex rose 1 per cent, while the financials subindex gained 0.7 per cent.

Among actively traded shares, ASE was up 1.3 per cent.

The chip firm on Tuesday became the latest tech firm to urge the newly installed government of president Tsai Ing-wen - more wary of mainland China than its predecessor - to allow Chinese capital greater access to Taiwan's chip industry.

The Taiwan dollar firmed TW$0.08 to TW$32.355 per US dollar.

REUTERS