Tech Stocks Expected To Drag On Taiwan Stock Market

(RTTNews) - The Taiwan stock market has closed lower in three consecutive trading days, sliding almost 300 points or 2.5 percent along the way. The Taiwan Stock Exchange now rests just above the 12,580-point plateau although it's tipped to open in the red again on Thursday.

The global forecast for the Asian markets is soft with technology stocks expected to continue their roller coaster ride, this time to the downside. A rising number of coronavirus cases adds to the negative sentiment. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The TSE finished modestly lower on Wednesday following losses from the financial and cement stocks, while the technology companies were mixed.

For the day, the index shed 61.63 points or 0.49 percent to finish at 12,583.88 after trading between 12,548.07 and 12,700.89.

Among the actives, Mega Financial retreated 1.26 percent, while CTBC Financial declined 1.10 percent, Fubon Financial fell 0.36 percent, First Financial dropped 1.20 percent, E Sun Financial slid 0.20 percent, Taiwan Semiconductor Manufacturing Company shed 0.80 percent, United Microelectronics Corporation soared 3.59 percent, Hon Hai Precision eased 0.13 percent, Largan Precision rose 0.29 percent, Catcher Technology skidded 1.11 percent, MediaTek spiked 2.32 percent, Formosa Plastic tumbled 1.60 percent, Asia Cement lost 0.48 percent, Taiwan Cement tanked 1.91 percent and Cathay Financial was unchanged.

The lead from Wall Street is broadly negative as stocks moved sharply lower on Wednesday, wiping out gains from the previous session as the markets fell to a one-month closing low.

The Dow tumbled 525.05 points or 1.92 percent to finish at 26,763.13, while the NASDAQ plummeted 330.65 points or 3.02 percent to end at 10,632.99 and the S&P 500 dropped 78.65 points or 2.37 percent to close at 3,236.92.

The sell-off on Wall Street came amid renewed weakness among technology stocks, as reflected by the particularly steep drop by the tech-heavy NASDAQ. Big-name tech companies like Netflix (NFLX), Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL) all showed significant moves to the downside.

Concerns about surging coronavirus cases in certain parts of the world may also have weighed on the markets even as President Donald Trump indicated the U.S. would not follow the U.K.'s lead and implement a second round of lockdowns.

Meanwhile, Federal Reserve Chair Jerome Powell, continuing to testify before Congress for the second day, said the U.S. Congress and the Federal Reserve both need to "stay with it" in working to bolster the economic recovery.

Crude oil futures settled higher Wednesday after data showed a drop in U.S. crude inventories last week. But the upside was capped by worries about the energy demand outlook amid a continued surge in coronavirus cases. West Texas Intermediate Crude futures for November ended higher by $0.13 or 0.3 percent at $39.93 a barrel.

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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