Tech Shares Expected To Drag Taiwan Bourse Lower On Tuesday

(RTTNews) - The Taiwan stock market has moved higher in two straight sessions, rallying more than 370 points or 1.5 percent along the way. The Taiwan Stock Exchange now rests just beneath the 15,550-point plateau although it's predicted to open in the red on Tuesday.

The global forecast for the Asian markets is mixed to lower, with support from oil stocks likely to offset weakness from technology shares. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The TSE finished sharply higher on Monday following gains from the financial shares, technology stocks and cement companies.

For the day, the index jumped 244.69 points or 1.60 percent to finish at 15,548.01 after trading between 15,409.08 and 15,656.35.

Among the actives, Cathay Financial and First Financial both rose 0.19 percent, while Mega Financial was up 0.14 percent, CTBC Financial slid 0.38 percent, E Sun Financial collected 0.17 percent, Taiwan Semiconductor Manufacturing Company spiked 2.47 percent, United Microelectronics Corporation soared 3.13 percent, Hon Hai Precision advanced 0.91 percent, Largan Precision surged 2.71 percent, Catcher Technology jumped 1.81 percent, MediaTek climbed 1.19 percent, Delta Electronics declined 1.05 percent, Formosa Plastics improved 0.46 percent, Asia Cement gained 0.92 percent, Taiwan Cement added 0.76 percent and Fubon Financial and Nan Ya Plastics were unchanged.

The lead from Wall Street is negative as the major averages quickly headed south on Monday, rebounded midday and then turned modestly lower again into the close.

The Dow sank 62.42 points or 0.20 percent to finish at 31,438.26, while the NASDAQ shed 83.07 points or 0.72 percent to end at 11,524.55 and the S&P 500 dipped 11.63 points or 0.30 percent to close at 3,900.11.

The volatility came as investors stayed cautious, reassessing the expected path of Federal Reserve interest rate hikes amid falling inflation expectations.

In economic news, the Commerce Department said new orders for U.S. manufactured durable goods increased more than expected in May. Also, the National Association of Realtors noted an unexpected rebound in pending home sales in May.

Oil futures settled higher on Monday, extending gains from the previous session amid slightly easing worries about outlook for energy demand. West Texas Intermediate Crude oil futures for August ended higher by $1.95 or 1.8 percent at $109.57 a barrel.