Tech Shares Expected To Fuel Taiwan Stock Market

(RTTNews) - The Taiwan stock market has moved lower in four straight sessions, sinking almost 1.750 points or 4.3 percent along the way. The Taiwan Stock Exchange now sits just above the 40,020-point plateau although it's likely to stop the bleeding on Thursday.

The global forecast for the Asian markets is broadly positive, thanks to sinking crude oil prices and support from the technology sectors. The European and U.S. markets were sharply higher on Wednesday and the Asian bourses are expected to follow that lead.

The TSE finished modestly lower on Wednesday following losses from the financial shares and technology stocks.

For the day, the index shed 154.74 points or 0.39 percent to finish at 40,020.82 after trading between 39,967.08 and 40,439.04.

Among the actives, Cathay Financial perked 0.13 percent, while Mega Financial and Asia Cement dropped 0.86 percent, CTBC Financial soared 4.33 percent, First Financial tanked 4.31 percent, Fubon Financial contracted 1.44 percent, E Sun Financial slumped 0.94 percent, Taiwan Semiconductor Manufacturing Company sank 0.91 percent, United Microelectronics Corporation plunged 4.42 percent, Hon Hai Precision tumbled 2.04 percent, Largan Precision plummeted 4.90 percent, Catcher Technology shed 0.54 percent, MediaTek rallied 2.38 percent, Novatek Microelectronics vaulted 1.39 percent, Formosa Plastics retreated 1.20 percent, Nan Ya Plastics skidded 1.10 percent and Delta Electronics was unchanged.

The lead from Wall Street is strong as the major averages opened slightly higher on Wednesday but accelerated throughout the day, ending at session highs.

The Dow spiked 645.47 points or 1.31 percent to finish at 50,009.35, while the NASDAQ jumped 399.65 points or 1.54 percent to end at 26,270.36 and the S&P 500 climbed79.36 points or 7,432.97.

The rally on Wall Street came on a steep drop by treasuries yields, which pulled back sharply, with the yield on the benchmark ten-year note plunging from its highest levels in well over a year.

The sharp drop in crude oil prices also contributed to the rise on Wall Street, thanks to increasing diplomatic measures to secure an agreement to end their hostilities between the United States and Iran. West Texas Intermediate crude for July delivery was down $5.89 or 5.66 percent at $98.26 per barrel.

Optimism about earnings news from Nvidia (NVDA) may also have generated buying interest, as the chipmaker was due to report its first quarter results after the close of trading.

In fact, Nvidia decisively beat expectations on both the top and bottom lines, likely giving the Asian markets a solid boost.

Closer to home, Taiwan will release Q1 numbers for gross domestic product later today, with forecasts suggesting an expansion of 13.69 percent following the 12.65 percent gain in the three months prior.