Soft Start Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has alternated between positive and negative finishes through the last four trading days since the end of the four-day losing streak in which it had retreated more than 1,080 points or 7.5 percent. The Taiwan Stock Exchange now rests just above the 12,975-point plateau and it's expected to open in the red again on Thursday.

The global forecast for the Asian markets suggests consolidation following recent gains and rising treasury yields. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The TSE finished sharply lower on Wednesday following losses from the financials, technology socks and plastics, while the cement companies offered support.

For the day, the index slumped 147.92 points or 1.13 percent to finish at the daily low of 12,976.76 after peaking at 13,155.62.

Among the actives, Cathay Financial collected 0.39 percent, while Mega Financial plunged 2.36 percent, CTBC Financial dropped 1.00 percent, Fubon Financial slid 0.20 percent, First Financial declined 1.25 percent, E Sun Financial slumped 2.17 percent, Taiwan Semiconductor Manufacturing Company tanked 2.83 percent, United Microelectronics Corporation eased 0.13 percent, Hon Hai Precision shed 0.48 percent, Largan Precision advanced 0.85 percent, Catcher Technology dipped 0.29 percent, MediaTek tumbled 1.87 percent, Delta Electronics retreated 1.65 percent, Formosa Plastics sank 0.87 percent, Nan Ya Plastics skidded 1.05 percent, Asia Cement added 0.66 percent and Taiwan Cement increased 0.48 percent.

The lead from Wall Street is soft as the major averages were unable to hold early gains on Wednesday, slipping into the red in afternoon trade and ending in negative territory.

The Dow shed 99.99 points or 0.33 percent to finish at 30,423.81, while the NASDAQ sank 91.89 points or 0.85 percent to end at 10,680.51 and the S&P 500 lost 24.82 points or 0.67 percent to close at 3,695.16.

Profit taking contributed to the pullback on Wall Street, as traders cashed in on the strong gains on Monday and Tuesday. The major averages ended Tuesday's trading well off their highs of the session, although the Dow still reached its best closing level in almost a month.

Lingering concerns about higher interest rates and the impact on the global economy also continued to weigh on the markets along with a jump in treasury yields. The yield on the benchmark 10-year note moved sharply higher following a modest pullback on Tuesday, reaching its highest levels in 14 years.

Stocks regained some ground following the release of the Federal Reserve's Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts. The Beige Book said economic activity in the U.S. has expanded modestly since September, although conditions varied across industries and districts.

Crude oil prices rose sharply Wednesday as data showed declines in U.S. crude and gasoline stockpiles last week. West Texas Intermediate Crude oil futures for November ended higher by $2.73 or 3.3 percent at $85.55 a barrel.

Closer to home, Taiwan will release September export order data later today; in August, orders were up 2.0 percent on year.