Renewed Support Anticipated For Taiwan Stock Market

(RTTNews) - The Taiwan stock market headed south again on Monday, one session after snapping the four-day losing streak in which it had retreated more than 1,080 points or 7.5 percent. The Taiwan Stock Exchange now rests just beneath the 12,970-point plateau although it's likely to bounce higher again on Tuesday.

The global forecast for the Asian markets is upbeat on bargain hunting after several days of volatility and heavy selling, while stability in the bond markets adds to the positive sentiment. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The TSE finished sharply lower on Monday following losses from the technology and cement stocks, while the financials were mixed and the plastics offered support.

For the day, the index retreated 162.07 points or 1.23 percent to finish at 12,966.05 after trading between 12,814.82 and 12,988.83.

Among the actives, Mega Financial shed 0.51 percent, while Fubon Financial collected 0.52 percent, First Financial declined 1.84 percent, E Sun Financial surrendered 1.91 percent, Taiwan Semiconductor Manufacturing Company tanked 3.64 percent, United Microelectronics Corporation tumbled 2.45 percent, Catcher Technology dropped 0.87 percent, MediaTek retreated 1.20 percent, Delta Electronics advanced 0.94 percent, Formosa Plastics improved 0.88 percent, Nan Ya Plastics added 0.47 percent, Asia Cement skidded 1.17 percent, Taiwan Cement slumped 2.16 percent and Hon Hai Precision, Largan Precision, Cathay Financial and CTBC Financial were unchanged.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Monday and stayed that way throughout the session.

The Dow surged 550.99 points or 1.86 percent to finish at 30,185.82, while the NASDAQ soared 354.41 points or 3.43 percent to end at 10.675.80 and the S&P 500 jumped 94.88 points or 2.65 percent to close at 3,677.95.

An early pullback by treasury yields fueled the buying interest, although yields regained ground over the course of the session. The markets also benefitted from strong earnings news from financial giant Bank of America (BAC).

The strength also followed news that the U.K. government is reversing course on previously announced fiscal plans that contributed to turmoil in the global bond markets.

In economic news, the Federal Reserve Bank of New York reported that regional manufacturing activity contracted more than expected in October.

Crude oil futures slumped on Monday, extending losses from the previous session as worries about a recession weighed on the outlook for energy demand and pushed down oil prices. West Texas Intermediate Crude oil futures for November eased $0.15 or 0.2 percent at $85.46 a barrel.