Markets

Tech Shares May Fuel Taiwan Stock Market Rebound

(RTTNews) - The Taiwan stock market has finished lower in two consecutive trading days, sinking more than 230 points or 2 percent along the way. The Taiwan Stock Exchange now rests just above the 12,645-point plateau although it's got a solid lead for Wednesday's trade.

The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The TSE finished sharply lower on Tuesday following losses from the financial shares, technology stocks and cement companies.

For the day, the index skidded 149.61 points or 1.17 percent to finish at 12,645.51 after trading between 12,632.74 and 12,786.91.

Among the actives, Cathay Financial fell 0.26 percent, while Mega Financial sank 1.24 percent, CTBC Financial dropped 1.62 percent, Fubon Financial retreated 1.18 percent, First Financial declined 1.21 percent, E Sun Financial surrendered 1.73 percent, Taiwan Semiconductor Manufacturing Company shed 0.68 percent, United Microelectronics Corporation dipped 0.20 percent, Hon Hai Precision lost 0.78 percent, Largan Precision skidded 1.00 percent, Catcher Technology added 0.28 percent, MediaTek tanked 2.11 percent, Formosa Plastic tumbled 2.28 percent, Asia Cement lost 0.95 percent and Taiwan Cement was down 1.07 percent.

The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.

The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.

The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."

Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.

In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.

Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.

Closer to home, Taiwan will release August numbers for industrial production and retail sales later today. In July, industrial production was up 2.65 percent on year and retail sales gained an annual 2.5 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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