Higher Open Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market on Tuesday snapped the two-day winning streak in which it had collected more than 75 points or 0.5 percent. The Taiwan Stock Exchange now sits just above the 16,000-point plateau although it's expected to open in the green on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The TSE finished modestly lower on Tuesday following losses from the technology stocks and mixed performances from the cement and finance sectors.

For the day, the index dropped 148.41 points or 0.92 percent to finish at 16,001.27 after trading between 15,975.91 and 16,215.35.

Among the actives, Cathay Financial eased 0.11 percent, while Mega Financial rose 0.41 percent, Fubon Financial collected 0.50 percent, Taiwan Semiconductor Manufacturing Company shed 0.56 percent, United Microelectronics Corporation fell 0.43 percent, Hon Hai Precision spiked 2.12 percent, Largan Precision rallied 2.22 percent, Catcher Technology skidded 1.09 percent, MediaTek tumbled 1.75 percent, Delta Electronics retreated 1.53 percent, Novatek Microelectronics added 0.55 percent, Formosa Plastics lost 0.26 percent, Nan Ya Plastics advanced 0.98 percent, Asia Cement shed 0.25 percent, Taiwan Cement improved 0.78 percent, China Steel perked 0.21 percent and CTBC Financial, First Financial and E Sun Financial were unchanged.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.