Tech Shares May Continue To Weigh On Taiwan Bourse

(RTTNews) - The Taiwan stock market turned lower again on Tuesday, one day after snapping the two-day slide in which it had given up almost 550 points or 2 percent. The Taiwan Stock Exchange now sits just above the 26,750-point plateau and it figures to open in the red again on Wednesday.

The global forecast for the Asian markets is weak on persistent concerns about an AI bubble. The European and U.S. markets were sharply lower and the Asian bourses also figure to open to the downside.

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

For the day, the index plummeted 691.19 points or 2.52 percent to finish at the daily low of 26,756.12 after peaking at 27,310.40.

Among the actives, Mega Financial fell 0.38 percent, while First Financial skidded 1.07 percent, Fubon Financial dropped 2.51 percent, E Sun Financial sank 0.99 percent, Taiwan Semiconductor Manufacturing Company plunged 2.77 percent, United Microelectronics Corporation advanced 0.80 percent, Hon Hai Precision contracted 2.54 percent, Largan Precision stumbled 2.82 percent, Catcher Technology surrendered 2.14 percent, MediaTek plummeted 4.88 percent, Delta Electronics tumbled 1.97 percent, Novatek Microelectronics fell 0.38 percent, Formosa Plastics tanked 3.71 percent, Nan Ya Plastics rallied 1.42 percent, Asia Cement retreated 1.33 percent and Cathay Financial and CTBC Financial were unchanged.

The lead from Wall Street is negative as the major averages opened in the red and remained under water throughout the trading day.

The Dow plunged 498.50 points or 1.07 percent to finish at 46,091.74, while the NASDAQ stumbled 275.23 points or 1.21 percent to close at 22,432.85 and the S&P 500 sank 55.09 points or 0.83 percent to end at 6,617.32.

Weakness among technology stocks continued to weigh on Wall Street amid an extended decline by market leader and AI darling Nvidia (NVDA) as traders look ahead to the release of the chipmaker's quarterly results later today.

The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble.

On the U.S. economic front, the Commerce Department released a report showing a significant rebound by new orders for U.S. manufactured goods in the month of August.

Crude oil prices soared on Tuesday as the end of the U.S. government shutdown has accelerated expectations of brisk demand. West Texas Intermediate crude for December delivery was up $0.90 or 1.49 percent at $60.80 per barrel.