Taiwan Bourse May Hand Back Monday's Gains

(RTTNews) - The Taiwan stock market on Monday wrote a finish to the two-day slide in which it had given up almost 550 points or 2 percent. The Taiwan Stock Exchange now sits just beneath the 27,450-point plateau although it's expected to open in the red on Tuesday.

The global forecast for the Asian markets is negative on valuation concerns, especially among technology shares. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The TSE finished slightly higher on Monday following gains from the plastics, weakness from the technology stock and a mixed picture from the financial sector.

For the day, the index rose 49.81 points or 0.18 percent to finish at the daily low of 27,447.31 after peaking at 27,723.77.

Among the actives, Cathay Financial perked 0.17 percent, while Mega Financial dropped 0.88 percent, First Financial collected 0.36 percent, E Sun Financial and Asia Cement both added 0.67 percent, Taiwan Semiconductor Manufacturing Company climbed 1.05 percent, United Microelectronics Corporation sank 0.68 percent, Hon Hai Precision stumbled 2.07 percent, Largan Precision tanked 3.18 percent, Delta Electronics shed 0.65 percent, Novatek Microelectronics advanced 0.90 percent, Formosa Plastics rallied 1.29 percent, Nan Ya Plastics jumped 1.62 percent and CTBC Financial, Fubon Financial, Catcher Technology and MediaTek were unchanged.

The lead from Wall Street is soft as the major averages spent the first half of Monday's trade relatively flat before tumbling in the afternoon, finishing near daily lows.

The Dow tumbled 557.24 points or 1.18 percent to finish at 46,590.24, while the NASDAQ dropped 192.51 points or 0.84 percent to close at 22,708.07 and the S&P 500 sank 61.70 points or 0.92 percent to end at 6,672.41.

The weakness on Wall Street came as valuation concerns resurfaced ahead of the release of quarterly results from Nvidia (NVDA) after the markets close on Wednesday.

Traders were also looking ahead to the release of U.S. economic data that was delayed due to the government shutdown. While the reports will be backward looking, the data could still impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting in December.

Crude oil prices edged lower on Tuesday as long-term oversupply concerns of a supply-demand mismatch continue to linger. West Texas Intermediate crude for December delivery dipped $0.09 or 0.13 percent at $60.01 per barrel.