Oversold Taiwan Bourse Called Lower Again

(RTTNews) - The Taiwan stock market has moved lower in four straight sessions, falling more than 385 points or 2.4 percent along the way. The Taiwan Stock Exchange now sits just above the 16,440-point plateau and it's got another negative lead again for Thursday's trade.

The global forecast for the Asian markets is broadly negative on geopolitical concerns and the dimming outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are expected to open in similar fashion.

The TSE finished sharply lower on Wednesday following losses from the cement companies and mixed performances from the financials and technology stocks.

For the day, the index declined 201.64 points or 1.21 percent to finish at 16,440.91 after trading between 16,398.76 and 16,612.25.

Among the actives, Cathay Financial collected 0.77 percent, while Mega Financial rose 0.26 percent, First Financial perked 0.19 percent, Fubon Financial gathered 0.16 percent, E Sun Financial sank 0.81 percent, Taiwan Semiconductor Manufacturing Company tanked 2.00 percent, United Microelectronics Corporation added 0.52 percent, Hon Hai Precision dropped 0.94 percent, Largan Precision surrendered 2.39 percent, Catcher Technology gained 0.54 percent, MediaTek retreated 1.45 percent, Delta Electronics declined 1.24 percent, Novatek Microelectronics rallied 1.40 percent, Formosa Plastics increased 0.25 percent, Nan Ya Plastics jumped 1.67 percent, Asia Cement plummeted 3.82 percent, Taiwan Cement plunged 2.99 percent, China Steel was up 0.40 percent and CTBC Financial was unchanged.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the day.

The Dow tumbled 332.57 points or 0.98 percent to finish at 33,665.08, while the NASDAQ dropped 219.44 points or 1.39 percent to close at 13,314.30 and the S&P 500 sank 58.60 points or 1.34 percent to end at 4,314.60.

The weakness on Wall Street came amid rising tensions in the Middle East after a deadly missile attack on Al-Ahli Baptist Hospital in Gaza killed several hundred people.

Hamas tried to attribute the blast to an Israeli airstrike, but the Israeli military said with some evidence it was not involved and the explosion was caused by a misfired Palestinian rocket.

Higher bond yields added to the negative sentiment raising concerns about the outlook for interest rates.

On the U.S. economic front, the Commerce Department noted a substantial rebound in new residential construction in the U.S. in September.

Crude oil prices rose sharply Wednesday on rising concerns over supplies as geopolitical concerns escalated after the large explosion at the Gaza hospital. West Texas Intermediate Crude oil futures for November jumped $1.66 or 1.9 percent at $88.32 a barrel.