Tech Shares May Boost Taiwan Stock Market

(RTTNews) - The Taiwan stock market has finished lower in consecutive trading days, sinking more than 200 points or 1.2 percent along the way. The Taiwan Stock Exchange now sits just above the 16,250-point plateau although it may find mild support on Tuesday.

The global forecast offers little clarity with few catalysts head of data later in the week, although treasury yields continue to be active. The European and U.S. markets were mixed and flat and the Asian markets figure to follow suit.

The TSE finished sharply lower on Monday with damage across the board, especially among the financials, technology stocks and plastic and cement companies.

For the day, the index dropped 189.36 points or 1.15 percent to finish at 16,251.36 after trading between 16,245.84 and 16,391.41.

Among the actives, Cathay Financial slumped 1.34 percent, while Mega Financial skidded 1.07 percent, CTBC Financial declined 1.22 percent, First Financial dropped 0.76 percent, Fubon Financial retreated 1.32 percent, E Sun Financial collected 0.21 percent, Taiwan Semiconductor Manufacturing Company tumbled 2.16 percent, United Microelectronics Corporation dipped 0.21 percent, Hon Hai Precision tanked 2.90 percent, Largan Precision shed 0.74 percent, Catcher Technology lost 0.55 percent, MediaTek sank 0.85 percent, Delta Electronics rose 0.16 percent, Novatek Microelectronics surrendered 2.16 percent, Formosa Plastics slid 0.64 percent, Nan Ya Plastics was down 1.09 percent, Asia Cement eased 0.26 percent, Taiwan Cement slipped 0.31 percent and China Steel fell 0.42 percent.

The lead from Wall Street is murky as the major averages opened lower on Monday, broke into the green my midday before fading and ending mixed and little changed.

The Dow slumped 190.87 points or 0.58 percent to finish at 32,936.41, while the NASDAQ added 34.52 points or 0.27 percent to close at 13,018.33 and the S&P 500 slipped 7.12 points or 0.17 percent to end at 4,217.04.

Stocks initially came under pressure as treasury yields rebounded amid ongoing concerns about the outlook for interest rates. Following the pullback seen last Friday, the yield on the benchmark 10year note moved back to the upside, briefly peeking above the key 5 percent level.

The subsequent turnaround on Wall Street came as treasury yields turned lower as the day progressed, with the ten-year yield falling into negative territory.

Trading activity was subdued, however, thanks to a lack of major U.S. economic data - although the calendar picks up later in the week. The earnings season also should be a factor, with a slew of big-name companies due to report their quarterly results.

Crude oil prices fell sharply on Monday amid easing concerns about oil supply on hopes the diplomatic efforts in the Middle East will help prevent the conflict there from escalating into a bigger regional war. West Texas Intermediate Crude oil futures for November settled at $85.49, down $2.59 or about 2.94 percent.