The Taiwan stock market has experienced a downward trend over the past four sessions, losing nearly 1,175 points or 5 percent in value. Currently, the Taiwan Stock Exchange hovers just below the 22,500-point mark and is anticipated to open in negative territory this Tuesday. The global outlook for Asian markets remains uncertain, with strength in oil companies potentially counterbalanced by the underperformance of technology stocks. While European markets saw declines, U.S. markets mostly trended upwards, suggesting a mixed performance from Asian markets as they navigate the middle ground.
On Monday, the Taiwan Stock Exchange concluded significantly lower, primarily due to substantial losses in technology shares. There was some support from the plastics sector and a mixed performance within the financial sector. The index dropped by 523.53 points or 2.28 percent, closing the day at 22,488.33, having fluctuated between 22,458.22 and 23,070.32 throughout the session. In terms of active stocks, Cathay Financial decreased by 0.17 percent, First Financial slipped 0.55 percent, Fubon Financial gained 0.17 percent, E Sun Financial fell 1.10 percent, and Taiwan Semiconductor Manufacturing Company lost 2.27 percent. United Microelectronics Corporation experienced a decline of 0.97 percent, while Hon Hai Precision suffered a steep drop of 5.51 percent. Largan Precision fell 3.45 percent, Catcher Technology edged down 0.25 percent, and MediaTek plummeted 5.12 percent. Delta Electronics tumbled 4.76 percent, Novatek Microelectronics decreased 0.82 percent, but Formosa Plastics improved by 2.86 percent, Nan Ya Plastics increased 1.41 percent, and Asia Cement rose 0.64 percent. Both Mega Financial and CTBC Financial remained unchanged.
Turning to Wall Street, the major indices presented a mixed to positive trend, as they began the session on different sides of the neutral line and concluded in the same fashion. The Dow climbed 359.95 points or 0.86 percent, ending at 42,298.40, whereas the NASDAQ saw a slight decline of 74.01 points or 0.39 percent, closing at 19,087.62. Meanwhile, the S&P 500 increased by 8.27 points or 0.14 percent, closing at 5,835.31.
The technology sector's weakness exerted early pressure on Wall Street, with Nvidia (NVDA), a leading AI company, dropping as much as 4.7 percent. Concerns regarding interest rates fueled negative sentiment, stemming from last Friday's unexpectedly strong monthly employment report. Nonetheless, the selling pressure eased over the trading day, prompting some investors to acquire stocks at reduced prices, leading to a recovery in the S&P 500 from its lowest intraday level in over two months.
Oil prices surged to a five-month high on Monday due to potential supply risks following sweeping sanctions by the U.S. on Russia's oil exports, coupled with the impact of a stronger dollar. West Texas Intermediate Crude futures for February ended the day up $2.25, rising nearly 3 percent to settle at $78.82 a barrel.
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