Rebound Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market turned emphatically lower again on Wednesday, one session after halting the four-day losing streak in which it had tumbled more than 760 points or 6.4 percent. The Taiwan Stock Exchange now rests just above the 13,460-point plateau although it's predicted to see renewed support on Thursday.

The global forecast for the Asian markets is upbeat following news of bond market intervention from the Bank of England. The European and U.S. markets were up and the oversold Asian bourses figure to follow suit.

The TSE finished sharply lower on Wednesday with damage in all sectors, especially the financials, technology stocks and cement companies.

For the day, the index plunged 360.52 points or 2.61 percent to finish at the daily low of 13,466.07 after trading as high as 13,854.09.

Among the actives, Cathay Financial declined 2.81 percent, while Mega Financial lost 1.54 percent, CTBC Financial tumbled 3.13 percent, Fubon Financial tanked 3.47 percent, First Financial slid 0.94 percent, E Sun Financial eased 0.19 percent, Taiwan Semiconductor Manufacturing Company shed 2.23 percent, United Microelectronics Corporation sank 2.95 percent, Hon Hai Precision dropped 2.90 percent, Largan Precision plummeted 9.04 percent, Catcher Technology dipped 0.58 percent, MediaTek plunged 4.05 percent, Delta Electronics retreated 3.82 percent, Formosa Plastics dipped 0.47 percent, Nan Ya Plastics was down 1.66 percent, Asia Cement slumped 2.09 percent and Taiwan Cement stumbled 2.51 percent.

The lead from Wall Street is broadly positive as the major averages opened mixed on Wednesday but accelerated shortly thereafter to finish solidly in the green.

The Dow surged 548.75 points or 1.88 percent to finish at 29,683.74, while the NASDAQ soared 222.13 points or 2.05 percent to end at 11,051.64 and the S&P 500 jumped 71.75 points or 1.97 percent to close at 3,719.04.

The rally on Wall Street reflected a positive reaction to the Bank of England's plans to begin temporarily purchasing long-dated U.K. government bonds to address dysfunction in the gilt market. In addition, the BoE postponed the selling of bonds held under the quantitative easing program to October 31.

Long-term U.K. bond yields have pulled back following the news, while U.S. treasury yields also moved sharply lower after surging in recent sessions. The yield on the benchmark 10-year note showed a steep drop after briefly topping 4.0 percent for the first time in over 12 years.

Stocks also benefited from a significant pullback by the U.S. dollar, with the U.S. dollar index tumbling by 1.2 percent. The greenback had recently reached new 20-year highs.

Crude oil prices rose sharply Wednesday after data showed a dip in U.S. crude inventories last week, and the dollar's sharp drop also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures for November ended higher by $3.65 or 4.7 percent at $82.15 a barrel.