Taiwan Shares May Extend Tuesday's Losses

(RTTNews) - The Taiwan stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had gained almost 400 points or 1.8 percent. The Taiwan Stock Exchange now sits just above the 23,200-point plateau and it's likely to open under water again on Wednesday.

The global forecast for the Asian markets is flat to lower ahead of the FOMC rate decision scheduled for later today. 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 sharply lower on Tuesday following losses from the plastics and technology companies, while the financial sector came in mixed.

For the day, the index tumbled 211.46 points or 0.90 percent to finish at 23,201.52 after trading between 23,094.67 and 23,422.17.

Among the actives, Mega Financial fell 0.23 percent, while First Financial collected 0.51 percent, Fubon Financial dropped 0.97 percent, E Sun Financial sank 0.78 percent, Taiwan Semiconductor Manufacturing Company slumped 0.87 percent, United Microelectronics Corporation retreated 1.61 percent, Hon Hai Precision tanked 2.56 percent, Largan Precision skidded 1.07 percent, Catcher Technology shed 0.93 percent, MediaTek surrendered 2.86 percent, Delta Electronics added 0.57 percent, Novatek Microelectronics lost 0.51 percent, Formosa Plastics plunged 3.12 percent, Nan Ya Plastics plummeted 3.11 percent, Asia Cement declined 1.47 percent and Cathay Financial and CTBC Financial were unchanged.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower, ending near session lows.

The Dow slumped 204.57 points or 0.46 percent to finish at 44,632.99, while the NASDAQ shed 80.29 points or 0.38 percent to close at 21,098.29 and the S&P 500 sank 18.91 points or 0.30 percent to end at 6,370.86.

The pullback on Wall Street may reflected profit taking following the upward trend seen over the past several sessions, which saw the NASDAQ and the S&P 500 reach new record highs.

Traders also seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today. While the Fed is expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

In economic news, the Conference Board released a report showing consumer confidence in the U.S. saw a modest improvement in July. Also, the Labor Department said job openings in the U.S. decreased by slightly less than expected in June.

Crude oil prices moved higher on Tuesday as the U.S. deadline for Russia to finalize an agreement with Ukraine or face sanctions draws nearer. West Texas Intermediate crude for September delivery was up $2.81 or 4.21 percent to $69.52 per barrel.