Rally in US bodes well for Taiwan on first day of 2013 trade: experts

U.S. stocks were open on Dec. 31 and surged sharply, with Dow Jones Industrial Average closing up 166 points, on prospect the White House and the U.S. Congress would reach a last-minute deal to resolve the fiscal cliff crisis.

Earlier on Dec. 31, U.S. President Barack Obama announced that a deal to avert austerity measures known as the fiscal cliff had taken shape, and that both Democrats and Republicans had narrowed their differences on levying higher taxes on the rich and trimming the size of the federal government. The announcement sent the Dow Jones as well as the S&P 500 and Nasdaq sharply higher.

The rally led to optimism for local analysts over Taiwan stocks, which closed Monday and Tuesday in observance of the New Year. They will resume trading today.

According to statistics compiled from 2000, the odds of Taiwan stocks going up on the first session after the New Year's are 76.91 percent. Stocks closed down only in 2006, 2008 and last year. The odds of stocks closing higher the first week after the New Year's also stand at 60 percent.

For January, the odds of stocks closing higher are only 50 percent, yet the margin of increase averages 3.5 percent. In 2001, stocks closed 25-percent higher in January.

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Airlines fight over tight space in Philippines

NEXT ARTICLE
Business leaders optimistic on '13 economic prospects

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit