Taiwan Stock Market Expected To Open In The Green

(RTTNews) - The Taiwan stock market headed south again on Monday, one session after ending the three-day losing streak in which it had dropped more than 425 points or 3 percent. The Taiwan Stock Exchange now rests just above the 14,610-point plateau although it's poised to see renewed support on Tuesday.

The global forecast for the Asian markets is upbeat on bargain hunting and an improved outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The TSE finished modestly lower on Monday following losses from the plastics companies and mixed performances from the financials and technology stocks.

For the day, the index lost 92.84 points or 0.63 percent to finish at 14,612.59 after trading between 14,538.66 and 14,658.46.

Among the actives, Cathay Financial dipped 0.24 percent, while CTBC Financial advanced 0.88 percent, First Financial collected 0.76 percent, E Sun Financial shed 0.41 percent, Taiwan Semiconductor Manufacturing Company retreated 1.35 percent, Largan Precision added 0.46 percent, Catcher Technology gained 0.58 percent, MediaTek tanked 2.33 percent, Delta Electronics fell 0.34 percent, Novatek Microelectronics sank 0.84 percent, Formosa Plastics declined 1.37 percent, Nan Ya Plastics slumped 0.27 percent, Asia Cement slid 0.24 percent, Taiwan Cement improved 0.45 percent, China Steel eased 0.17 percent and United Microelectronics Corporation, Hon Hai Precision, Mega Financial and Fubon Financial were unchanged.

The lead from Wall Street is broadly positive as the major averages opened flat on Monday but accelerated as the day progressed, ending near session highs.

The Dow surged 528 points or 1.58 percent to finish at 34,005.04, while the NASDAQ rallied 139.12 points or 1.26 percent to end at 11,143.74 and the S&P 500 jumped 56.18 points or 1.43 percent to close at 3,990.56.

The rally on Wall Street came as traders picked up stocks at reduced levels following last week's notable decline.

Positive sentiment was also generated in reaction to a survey from the New York Federal Reserve showing inflation expectations decreased at the short, medium, and longer terms in November.

Traders also looked ahead to the Federal Reserve's highly anticipated monetary policy decision on Wednesday. While the Fed is widely expected to slow the pace of interest rate hikes to 50 basis points, traders have recently expressed concerns about how much further the Fed will need to raise rates in order to contain inflation.

Crude oil prices rose sharply Monday on supply concerns following the continued closure of a pipeline carrying Canadian heavy crude to the U.S. Gulf Coast of Mexico. West Texas Intermediate Crude oil futures for January ended higher by $2.15 or 3 percent at $73.17 a barrel.