Bargain Hunting May Boost Taiwan Stock Market

(RTTNews) - The Taiwan stock market has moved lower in four straight sessions, dropping more than 570 points or 4 percent along the way. The Taiwan Stock Exchange now rests just above the 14,170-point plateau although its due for support on Wednesday.

The global forecast for the Asian markets is cautiously optimistic, with bargain hunting expected after days of heavy selling on recession fears. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The TSE finished sharply lower on Tuesday with damage across the board, especially among the financials and technology stocks.

For the day, the index tumbled 263.29 points or 1.82 percent to finish at 14,170.03 after trading between 14,157.99 and 14,451.91.

Among the actives, CTBC Financial shed 0.68 percent, while Fubon Financial sank 0.71 percent, E Sun Financial skidded 1.23 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.93 percent, United Microelectronics Corporation tanked 2.56 percent, Hon Hai Precision retreated 1.48 percent, Largan Precision stumbled 1.78 percent, Catcher Technology fell 0.30 percent, MediaTek declined 1.52 percent, Delta Electronics plunged 2.41 percent, Novatek Microelectronics plummeted 2.91 percent, Formosa Plastics was down 1.16 percent, Nan Ya Plastics slumped 1.68 percent, Asia Cement dropped 0.97 percent, Taiwan Cement lost 0.44 percent and Cathay Financial, Mega Financial and First Financial were unchanged.

The lead from Wall Street suggests mild upside as the major averages opened lower, bounced back and forth across the unchanged line and finally moved into positive territory for good in the afternoon.

The Dow advanced 92.20 points or 0.28 percent to finish at 32,848,74, while the NASDAQ perked 1.08 points or 0.01 percent to close at 10,547.11 and the S&P 500 rose 3.96 points or 0.10 percent to end at 3,821.62.

The modest strength on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness. The major averages had closed lower for four consecutive session, ending Monday's trading at their lowest closing levels in over a month.

Buying interest remained somewhat subdued, however, with some traders reluctant to get back into the markets amid lingering concerns the Federal Reserve's aggressive interest rate hikes will tip the economy into a recession.

In economic news, the Commerce Department reported a decrease in new residential construction and building permits in the U.S. in November.

Crude oil bounced higher on Tuesday thanks to an improving demand outlook and a slightly weaker dollar. West Texas Intermediate rose $0.83 or 1.10 percent to $76.02 per barrel.