FX.co ★ Tech Shares Likely To Drag Taiwan Bourse Lower

The Taiwan stock market has shown gains for two consecutive sessions, accumulating over 100 points or 0.4 percent in the process. The Taiwan Stock Exchange (TSE) currently hovers just above the 22,220-point mark; however, it might encounter resistance on Wednesday.

The global outlook for Asian markets is mixed to negative, with significant declines anticipated in technology stocks. European and U.S. markets exhibited mixed to lower performances, and Asian bourses are likely to open under pressure.

On Tuesday, the TSE closed modestly higher, as the technology sector's gains were partially offset by weaknesses in the financial and plastics sectors. The index increased by 59.08 points, or 0.27 percent, ending at 22,223.57, having fluctuated between 21,833.85 and 22,276.39 throughout the day.

Key players included Cathay Financial, which fell by 1.59 percent; Mega Financial, down by 1.27 percent; and CTBC Financial, which tumbled 1.94 percent. First Financial shed 0.51 percent, Fubon Financial lost 0.80 percent, and E Sun Financial dropped by 1.69 percent. Taiwan Semiconductor Manufacturing Company decreased by 0.42 percent, and United Microelectronics Corporation lost 0.40 percent. In contrast, Hon Hai Precision rose by 1.55 percent, Largan Precision surged by 5.05 percent, and Catcher Technology strengthened by 1.42 percent. Other notable movements included MediaTek, which rallied 1.21 percent, Delta Electronics climbing 1.01 percent, and Novatek Microelectronics adding 0.19 percent. On the downside, Formosa Plastics declined by 1.53 percent, Nan Ya Plastics slid by 0.50 percent, and Asia Cement dropped by 0.72 percent.

Wall Street provided a largely negative lead, with the major averages experiencing losses after a brief positive opening. The Dow Jones Industrial Average jumped by 203.40 points (0.50 percent) to close at 40,743.33. Meanwhile, the NASDAQ plummeted by 222.79 points (1.28 percent) to 17,147.42, and the S&P 500 sank by 27.10 points (0.50 percent) to finish at 5,436.44.

Wall Street's mixed performance came as traders awaited the Federal Reserve's monetary policy announcement. The Fed is widely expected to maintain current interest rates, but the accompanying statement could significantly influence market expectations for the central bank's next decision in September.

The NASDAQ's substantial drop was driven by pressure on tech stocks throughout the day, particularly affecting Nvidia (NVDA), Microsoft (MSFT), and Advanced Micro Devices (AMD). Semiconductor stocks were among the worst performers, leading to a 3.9 percent decline for the Philadelphia Semiconductor Index, its lowest close in over two months.

Oil prices fell on Tuesday due to persistent demand concerns ahead of the Federal Reserve's monetary policy announcement and the release of weekly inventory data. West Texas Intermediate crude oil futures for September dropped by $1.08 (1.42 percent) to $74.73 per barrel.

Domestically, Taiwan is set to release preliminary Q2 gross domestic product (GDP) figures later today, with forecasts predicting a 4.65 percent year-over-year increase, down from the 6.56 percent growth seen in the previous quarter.