Lower Open Anticipated For Taiwan Stock Market

(RTTNews) - Ahead of Wednesday's Labor Day holiday, the Taiwan stock market had ended the two-day winning streak in which it had surged almost 750 points or 3.8 percent. The Taiwan Stock Exchange now sits just beneath the 20,400-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets is soft following the Federal Reserve's rate decision and statement. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The TSE finished modestly lower on Tuesday following losses from the financial shares, and plastics, while the technology companies were mixed.

For the day, the index sank 98.92 points or 0.48 percent to finish at the daily low of 20,396.60 after peaking at 20,559.97.

Among the actives, Cathay Financial sank 0.59 percent, while Mega Financial slid 0.25 percent, CTBC Financial fell 0.44 percent, First Financial slumped 0.55 percent, Fubon Financial was down 0.43 percent, E Sun Financial dropped 0.90 percent, Taiwan Semiconductor Manufacturing Company shed 0.63 percent, United Microelectronics Corporation added 0.60 percent, Hon Hai Precision retreated 1.58 percent, Largan Precision lost 0.68 percent, Catcher Technology advanced 0.93 percent, MediaTek surrendered 2.27 percent, Delta Electronics dipped 0.16 percent, Novatek Microelectronics skidded 1.12 percent, Formosa Plastics retreated 1.15 percent, Nan Ya Plastics tumbled 1.56 percent, Asia Cement rose 0.23 percent, Taiwan Cement declined 0.93 percent and China Steel weakened 0.60 percent.

The lead from Wall Street offers little guidance as the major averages were flat on Wednesday until a spike following the Federal Reserve's monetary policy announcement. It faded quickly, however, and the markets finished mixed and little changed.

The Dow gained 87.37 points or 0.23 percent to finish at 37,903.29, while the NASDAQ slumped 52.34 points or 0.33 percent to end at 15,605.48 and the S&P 500 lost 17.30 points or 0.34 percent to close at 5,018.39.

The late-day volatility came after the Fed announced its widely expected decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective.

Members of the Fed also reiterated they need greater confidence inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

On the economic data front, payroll processor ADP released a report showing private sector employment increased by more than expected in the month of April.

Oil prices fell to a seven-week low on Wednesday after data showed an unexpected sharp jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93 at $79.00 a barrel, the lowest settlement since March 12.