FX.co ★ Tech Shares May Weigh On Taiwan Stock Market

The Taiwan stock market ended a five-day winning streak on Monday, a run that had seen it rally over 840 points or 4.3 percent. The Taiwan Stock Exchange is now just above the 19,725-point mark, and it's possible that it could drop even further on Tuesday.

The global forecast for Asian markets is a mixture of highs and lows as investors eagerly await new inflation data that could influence future interest rates. European and U.S. markets have also seen mixed results, leading experts to speculate Asian markets will follow the same pattern.

On Monday, the Taiwan Stock Exchange witnessed a modest decrease resulting from the fluctuating performances of financial and technology shares. The index dropped 59.24 points or 0.30 percent to close at 19,726.08 after trading between 19,649.67 and 19,828.70.

Various active stocks performed differently with Cathay Financial increasing by 1.66 percent, Mega Financial decreasing by 0.25 percent, CTBC Financial increasing 0.33 percent, and Taiwan Semiconductor Manufacturing Company losing 2.30 percent. United Microelectronics Corporation lost 0.58 percent, whereas Hon Hai Precision saw a surge of 4.29 percent.

Looking to Wall Street, the performance was lackluster as the major averages such as the Dow, opened lower on Monday but recovered marginally by the close of trading to finish slightly higher.

Much of the Wall Street's hesitancy is due to uncertainty regarding future interest rates ahead of key inflation data expected to be released soon. Federal Reserve officials have indicated they need more confirmation that inflation is slowing before thinking about cutting rates.

Although the Federal Reserve is widely anticipated to keep rates steady at its meeting next week, the upcoming data may influence when a rate cut will occur.

Oil futures also decreased on Monday due to concerns about demand from China and hesitation before the release of key U.S. consumer price inflation data. West Texas Intermediate Crude oil futures went down for the third consecutive session, declining by $0.08 or 0.1 percent to settle at $77.93 a barrel.