The Taiwan stock market has enjoyed consistent growth in its last two sessions, gaining over 450 points or a 2.2 percent increase overall. The Taiwan Stock Exchange now stands just over the 19,380-point mark, though there may be some profit consolidation expected on Wednesday.
Globally, Asian markets are expected to further consolidate, primarily due to concerns regarding the forecast for interest rates. While the European markets displayed a mixed and steady performance, the U.S. exchanges experienced a sharp decline with the Asian markets expected to follow suit.
On Tuesday, the Taiwan Stock Exchange (TSE) ended slightly higher, due to a varied performance from tech stocks and a slump in financial shares. The index for the day saw an increase of 81.61 points or 0.42 percent, closing at 19,386.92 points after fluctuations between 19,332.73 and 19,453.85 points.
Focusing on specifics, Mega Financial appreciated by 0.64 percent, whereas CTBC Financial declined slightly by 0.17 percent. Taiwan Semiconductor Manufacturing Company saw an uptick of 0.69 percent, while United Microelectronics Corporation experienced a small slump of 0.20 percent. Ingressive drops were also noted in stocks such as Nan Ya Plastics, which declined by 1.90 percent.
On Wall Street, the situation was largely negative, as the significant exchanges launched into a decline that persisted throughout the session, ending near daily lows. Confirmed by the drop of 404.64 points (or 1.04 percent) in the Dow, and the NASDAQ falling 267.92 points or 1.65 percent. This trend was assumed to be traders capitalizing on the recent strength of the markets that had previously propelled the S&P 500 and NASDAQ to record highs.
The unease surrounding the prospects for interest rates was another factor that influenced the markets' behavior. This is in anticipation of Federal Reserve Chair Jerome Powell's forthcoming congressional testimonies, due to take place at the House Financial Services Committee and Senate Banking Committee.
Recent U.S. economic data indicated that growth in the service sector was slower than forecasted in February, as reported by the Institute for Supply Management. Additionally, The Commerce Department recorded a reduction in new orders for U.S. manufactured goods for January.
Lastly, crude oil futures decreased again in the second consecutive session, due to fears concerning demand outlook. Consequently, West Texas Intermediate Crude oil futures for April ended at $78.15 a barrel, down $0.59.
