Bargain Hunting May Boost Taiwan Stock Market

The Taiwan stock market turned lower again on Wednesday, one day after ending the three-day losing streak in which it had dropped more than 525 points or 1.5 percent. The Taiwan Stock Exchange now sits just above the 16,300-point plateau although it’s due for support on Thursday.

The global forecast for the Asian markets is mixed to higher thanks mainly to bargain hunting after heavy selling in the region. The European markets were up and the U.S. bourses were mixed and flat and the Asian markets figure to split the difference.

The TES finished sharply lower on Wednesday with damage across the board – especially from the financials, technology stocks and plastic companies.

For the day, the index plunged 341.44 points or 2.05 percent to finish at 16,303.35 after trading between 16,219.41 and 16,427.32.

Among the actives, Cathay Financial plummeted 3.12 percent, while Mega Financial sank 0.83 percent, CTBC Financial retreated 2.69 percent, Fubon Financial slumped 2.53 percent, First Financial dropped 1.25 percent, E Sun Financial fell 0.75 percent, Taiwan Semiconductor Manufacturing Company plunged 3.66 percent, United Microelectronics Corporation tumbled 2.95 percent, Hon Hai Precision shed 0.99 percent, Largan Precision skidded 1.21 percent, Catcher Technology declined 1.73 percent, MediaTek tanked 3.00 percent, Delta Electronics stumbled 2.78 percent, Novatek Microelectronics surrendered 3.32 percent, Formosa Plastic erased 0.95 percent, Nan Ya Plastics slid 1.39 percent, Asia Cement eased 0.21 percent and Taiwan Cement lost 0.87 percent.

The lead from Wall Street ends up mixed and flat after the major averages shook off early support on Wednesday, fading late and ending on opposite sides of the unchanged line.

The Dow added 61.75 points or 0.19 percent to finish at 33,301.93, while the NASDAQ eased 1.81 points or 0.01 percent to close at 12,488.93 and the S&P 500 rose 8.76 points or 0.21 percent to end at 4,183.96.

The markets had opened higher on bargain hunting and earnings optimism but gave back most of those gains as the day progressed on worries over a Covid-fueled economic slowdown and the outlook for interest rates.

In economic news, the National Association of Realtors said that pending home sales fell for the fifth straight month in March, although the decline was less than expected.

Crude oil prices climbed higher on Wednesday, lifted by data showing a drop in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for rose $0.32 or 0.3 percent at $102.02 a barrel.

Closer to home, Taiwan will release an advance estimate for Q1 gross domestic product later today, with forecasts calling for an annual expansion of 2.9 percent – slowing from 4.86 percent in the three months prior.