Prior to the Peace Memorial Day holiday on Wednesday, the Taiwan stock market saw a halt to its three-day winning streak in which it had surged over 270 points, or 1.4 percent. Currently, the Taiwan Stock Exchange is marginally above the 18,850-point mark and is expected to face downward pressure on Thursday.
Market forecasts globally indicate caution for Asian markets ahead of the release of crucial U.S. inflation data. While European markets demonstrated mixed results, U.S. stock markets showed a decline, suggesting that Asian markets may express varied results in response.
On Tuesday, the Taiwan Stock Exchange (TSE) closed with a modest drop following losses from cement companies and varied performance from financial and technological stocks.
The day's trading ended with the index dipping 93.64 points or 0.49 percent, terminating at 18,854.41. Specific changes were seen in various companies; Mega Financial increased slightly with 0.13 percent while CTBC Financial saw a 0.34 percent decrease. Meanwhile, United Microelectronics Corporation and Largan Precision rose by 0.31 percent and 0.57 percent, respectively. In contrast, Delta Electronics and Formosa Plastics saw considerable losses.
Wall Street's influence currently appears weak, with key market averages inaugurating Wednesday with substantial losses. However, this deficit was slightly recovered later in the day, but the closing still remained in the red.
Traders seem to be turning their profits into cash prior to the imminent release of significant consumer price inflation data. Given that officials from the Federal Reserve stated they require more assurance that inflation is slowing before considering reduction of interest rates, the upcoming data could greatly influence future rate predictions.
The Commerce Department reported a downwards revision of real gross domestic product growth for the fourth quarter, settling at 3.2 percent from the previously recorded 3.3 percent. Additionally, a larger-than-expected increase in U.S. crude inventories resulted in a fall in oil prices on Wednesday.
Within Taiwan, the fourth quarter data for gross domestic product (GDP) and January's figures for industrial production and unemployment are due to be released soon. Predictions are that GDP will increase by 5.12 percent year-on-year, a rise from the previous 2.32 percent over three months. Conversely, December saw a fall in industrial output by 3.99 percent year-on-year, with a jobless rate recorded as 3.4 percent.
