Tech Shares Likely To Weigh On Taiwan Stocks

(RTTNews) - The Taiwan stock market has finished lower in two straight sessions, plummeting almost 800 points or 6 percent along the way. The Taiwan Stock Exchange now rests just above the 13,100-point plateau and it's predicted to see continued consolidation on Wednesday.

The global forecast for the Asian markets is mixed to lower, with a dose of volatility as bargain hunting may give the oversold bourses a lift - but the gains may evaporate as the day progresses. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The TSE finished with widespread losses on Tuesday with damage across the board, especially among the technology stocks and financials.

For the day, the index plummeted 596.25 points or 4.35 percent to finish at the daily low of 13,106.03 after moving as high as 13,394.12.

Among the actives, Cathay Financial sank 2.22 percent, while Mega Financial slumped 3.06 percent, CTBC Financial shed 1.71 percent, Fubon Financial weakened 2.37 percent, First Financial dropped 1.96 percent, E Sun Financial tumbled 3.56 percent, Taiwan Semiconductor Manufacturing Company plummeted 8.33 percent, United Microelectronics Corporation plunged 6.96 percent, Hon Hai Precision retreated 3.26 percent, Largan Precision crashed 8.13 percent, Catcher Technology lost 1.74 percent, MediaTek declined 2.30 percent, Delta Electronics surrendered 3.82 percent, Formosa Plastics slid 0.71 percent, Nan Ya Plastics was down 1.34 percent, Asia Cement fell 0.75 percent and Taiwan Cement gave away 1.31 percent.

The lead from Wall Street ends up weak as the major averages saw considerable volatility on Tuesday, opening lower before rallying and then handing back the gains to finish mixed.

The Dow rose 36.31 points or 0.12 percent to finish at 29,239.19, while the NASDAQ tumbled 115.91 points or 1.10 percent to end at 10,426.19 and the S&P 500 sank 23.55 points or 0.65 percent to close at 3,588.84.

The early weakness on Wall Street was due to concerns about rising interest rates and the impact of high borrowing costs on corporate earnings and economic growth. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed.

The markets rebounded when treasury yields ticked lower, but stocks faltered past mid-afternoon after the Bank of England said that its market intervention will be over soon.

Oil futures fell on Tuesday, extending losses from the previous session on concerns about outlook for energy demand amid the rising possibility of a global recession. A surge in COVID-19 cases in China and fears of further monetary policy tightening also weighed. West Texas Intermediate Crude oil futures for November sank $1.78 or 2 percent at $89.35 a barrel.