Tech Shares Likely To Drag Taiwan Market Lower

(RTTNews) - The Taiwan stock market moved back to the downside again on Tuesday, one session after halting the two-day slide in which it had slipped more than 60 points or 0.2 percent. The Taiwan Stock Exchange now sits just above the 28,110-point plateau and it's looking at another soft start again on Wednesday.

The global forecast for the Asian markets is negative on concerns that technology shares may be over bought. The European and U.S. markets were firmly under water and the Asian bourses are expected to follow suit.

The TSE finished modestly lower on Tuesday as losses from the technology stocks were offset by gains from the financial sector.

For the day, the index stumbled 218.03 points or 0.77 percent to finish at 28,116.56 after trading between 28,033.62 and 28,554.61.

Among the actives, Mega Financial collected 0.62 percent, while First Financial perked 0.18 percent, Fubon Financial added 0.54 percent, E Sun Financial gained 0.50 percent, Taiwan Semiconductor Manufacturing Company fell 0.33 percent, United Microelectronics Corporation shed 0.42 percent, Hon Hai Precision stumbled 2.98 percent, Largan Precision retreated 1.34 percent, Catcher Technology slipped 0.25 percent, MediaTek climbed 1.15 percent, Delta Electronics sank 0.81 percent, Novatek Microelectronics improved 0.61 percent, Formosa Plastics eased 0.13 percent, Asia Cement was up 0.28 percent and Cathay Financial, CTBC Financial and Nan Ya Plastics were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Tuesday and remained in the red throughout the trading day, ending near session lows.

The Dow dropped 251.44 points of 0.53 percent to finish at 47,085.24, while the NASDAQ plummeted 486.09 points or 2.04 percent to close at 23,348.64 and the S&P 500 sank 80.42 points or 1.17 percent to end at 6,771.55.

The sell-off on Wall Street came amid concerns about the valuations of tech stocks, which have helped lead the markets to record highs amid optimism about artificial intelligence.

The weakness on Wall Street also came as Goldman Sachs (GS) CEO David Solomon warned of a significant correction by the equity markets over the next 1-2 years.

Crude oil prices declined sharply on Tuesday due to excess supply concerns. West Texas Intermediate crude for December delivery was down $0.44 or 0.72 percent at $60.61 per barrel.