The Taiwan stock market has experienced declines in two of the last three trading sessions following a streak of four consecutive gains during which it jumped over 1,000 points, a rise of 4.3%. The Taiwan Stock Exchange currently hovers slightly above the 23,125-point mark and is poised for a subdued opening on Wednesday.
Globally, the forecast for Asian markets remains bleak, with anticipated weaknesses in the computer, semiconductor, and housing sectors. Both European and U.S. markets have shown downward trends, a movement likely to be mirrored by Asian exchanges.
On Tuesday, the TSE ended slightly lower, influenced by diminishing values in financial and technology stocks. Specifically, the index declined by 148.17 points, or 0.64%, concluding at 23,125.08, after fluctuating between 23,071.43 and 23,329.01.
In terms of individual stocks, Cathay Financial fell by 0.87%, Mega Financial decreased by 0.63%, CTBC Financial reduced by 0.16%, and Fubon Financial increased by 0.55%. Meanwhile, E Sun Financial dipped 0.18%, Taiwan Semiconductor Manufacturing Company dropped 0.93%, United Microelectronics Corporation declined by 0.79%, and Hon Hai Precision slipped by 1.54%. Largan Precision rose by 0.20%, Catcher Technology dropped sharply by 4.85%, and MediaTek saw a 1.89% rise. Delta Electronics lost 0.49%, while Novatek Microelectronics saw a modest gain of 0.21%. Additionally, Formosa Plastics rallied by 1.24%, whereas Nan Ya Plastics dipped 0.54%, Asia Cement fell 0.47%, and First Financial remained unchanged.
U.S. stock markets presented a soft lead, with major indices starting flat on Tuesday and maintaining that level for much of the session before descending significantly into negative territory by the end of the day.
The Dow Jones Industrial Average decreased by 154.10 points, or 0.35%, closing at 44,247.83. The NASDAQ Composite declined by 49.45 points, or 0.25%, ending at 19,687.24, and the S&P 500 fell by 17.94 points, or 0.30%, finishing at 6,034.91.
Weakness on Wall Street was largely due to traders capitalizing on recent market strength ahead of the Labor Department's forthcoming release of the consumer price inflation report, which is a key market indicator.
While the Federal Reserve is widely anticipated to reduce interest rates by another 25 basis points next week, the released data may influence projections regarding future rate reductions.
According to the CME Group's FedWatch Tool, there is currently an 86.1% probability that the Fed will lower rates by a quarter point next week. However, there is a 69.1% probability that the Fed will maintain rates without further changes in late January.
Meanwhile, oil futures rose on Tuesday amidst optimism that demand from China will rise following recent stimulus measures by the Chinese government. West Texas Intermediate Crude oil futures for January increased by $0.22, or 0.32%, closing at $68.59 per barrel.
