FX.co ★ Bargain Hunting May Boost Taiwan Stock Market

The Taiwan stock market continued its decline for a second consecutive session, falling more than 630 points or 2.7 percent overall. Currently, the Taiwan Stock Exchange (TSE) rests just above the 22,220-point mark, with expectations of stabilizing on Tuesday.

The forecast for Asian markets remains uncertain due to an ambiguous outlook on interest rates. While European markets experienced a downturn and U.S. markets saw slight gains, Asian markets are likely to find a middle ground.

On Monday, the TSE saw a significant drop driven by widespread profit-taking, particularly in the technology sector, financials, and plastics. The index plunged 598.25 points, or 2.62 percent, closing at a daily low of 22,224.54 after reaching a peak of 22,691.23.

Key active stocks included:

- Cathay Financial: down 1.48 percent

- Mega Financial: down 0.38 percent

- CTBC Financial: down 0.58 percent

- First Financial: down 1.44 percent

- Fubon Financial: up 0.17 percent

- E Sun Financial: down 0.88 percent

- Taiwan Semiconductor Manufacturing Company: down 4.30 percent

- United Microelectronics Corporation: down 2.18 percent

- Hon Hai Precision: down 1.83 percent

- Largan Precision: down 2.68 percent

- Catcher Technology: up 0.64 percent

- MediaTek: down 6.75 percent

- Delta Electronics: down 4.88 percent

- Novatek Microelectronics: up 1.57 percent

- Nan Ya Plastics: down 0.86 percent

- Asia Cement: up 2.36 percent

- Formosa Plastics: unchanged

Wall Street ended with cautious optimism. Major indices opened flat and fluctuated around the line for most of the session, only to experience a late rally that pushed them into positive territory by closing.

- The Dow Jones Industrial Average rose 17.15 points, or 0.04 percent, finishing at 42,330.15, a record high.

- The NASDAQ increased by 69.58 points, or 0.38 percent, closing at 18,189.17.

- The S&P 500 climbed 24.31 points, or 0.42 percent, ending at a record 5,762.48.

Initial market pressure followed comments from Federal Reserve Chair Jerome Powell, who indicated the central bank would continue lowering interest rates, though not on a predetermined path. Powell's remarks tempered expectations of aggressive rate cuts by the Fed in the coming months.

The Fed's next monetary policy meeting is scheduled for November 6-7. According to CME Group's FedWatch Tool, there is currently a 65.3 percent chance of a 25-basis point rate cut and a 34.7 percent chance of a 50-basis point cut.

In the oil market, futures settled flat on Monday amid uncertainty over China's oil demand outlook. West Texas Intermediate Crude oil futures for November ended slightly down, by $0.01, at $68.17 per barrel.