FX.co ★ Taiwan Bourse Tipped To Head South Again On Wednesday

On Tuesday, the Taiwan stock market put an end to its two-day decline, during which it stumbled more than 630 points or 2.7 percent. The Taiwan Stock Exchange (TSE) now sits slightly above the 22,390-point mark, although indications suggest it may open in the red on Wednesday.

The global outlook for Asian markets remains subdued due to escalating geopolitical tensions in the Middle East. European markets presented a mixed picture, whereas U.S. markets saw a downturn, and it is expected that Asian markets will follow the U.S. trend.

The TSE closed moderately higher on Tuesday, with a mixed performance across financials, technology stocks, and plastics companies. Specifically, the index climbed 165.85 points or 0.75 percent, finishing at 22,390.39, within a trading range of 22,311.33 to 22,446.86.

Breaking down the activity, Cathay Financial fell by 0.35 percent, while Mega Financial edged up 0.38 percent. First Financial declined by 0.55 percent, whereas Fubon Financial increased by 0.33 percent. E Sun Financial notably surged by 2.14 percent. Taiwan Semiconductor Manufacturing Company rose by 1.57 percent, while United Microelectronics Corporation dipped 0.19 percent. Hon Hai Precision slid by 0.27 percent, but Largan Precision soared 3.35 percent. Catcher Technology gained 1.27 percent, MediaTek advanced 2.98 percent, and Delta Electronics climbed 1.05 percent. Novatek Microelectronics also slid slightly by 0.19 percent. Formosa Plastics fell by 0.93 percent, Nan Ya Plastics inched up 0.22 percent, Asia Cement dropped 0.63 percent, and CTBC Financial remained unchanged.

The sentiment from Wall Street was negative. Major averages opened lower on Tuesday and remained in the red throughout trading.

The Dow Jones Industrial Average dropped 173.18 points or 0.41 percent to land at 42,156.97. The NASDAQ plunged 278.81 points or 1.53 percent to close at 17,910.36, and the S&P 500 sank 53.73 points or 0.93 percent to finish at 5,708.75.

Wall Street’s weakness resulted from rising tensions in the Middle East after Iran launched a ballistic missile attack on Israel. The Islamic Revolutionary Guard Corps of Iran stated that the attack was a response to the killing of Hezbollah leader Hassan Nasrallah and others in recent Israeli airstrikes.

A senior White House official disclosed that the U.S. had information indicating Iran was preparing to launch an imminent missile attack on Israel, contributing to the early sell-off on the stock market.

Geopolitical tensions overshadowed a separate report showing continued contraction in U.S. manufacturing activity in September and an unexpected rise in U.S. job openings in August.

Oil prices climbed on Tuesday, driven by the prospect of supply constraints amid the rising Middle Eastern tensions. West Texas Intermediate Crude oil futures for November rose $1.66, or nearly 2.5 percent, closing at $69.83 per barrel.