The Taiwan stock market experienced another downward trend on Friday, reversing the brief respite from a recent two-day slide that saw a cumulative drop of around 360 points or 1.5 percent. The Taiwan Stock Exchange Index now hovers slightly above the 23,020-point mark, and it is anticipated to stay within this range as the new week begins.
The outlook for Asian markets is generally flat as investors await the upcoming Federal Open Market Committee (FOMC) meeting later this week. Last week's pattern of slight weakness in the European and U.S. markets is expected to influence Asian market behavior.
On Friday, the Taiwan Stock Exchange closed with a slight decline, primarily driven by losses in financial and plastics stocks, although the performance among tech companies was mixed. Specifically, the index decreased by 26.32 points or 0.11 percent to close at 23,020.48. It fluctuated between a low of 22,920.84 and a high of 23,097.52 throughout the day.
Key market players showed varied performance: Cathay Financial eased by 0.14%, First Financial dropped by 0.72%, and E Sun Financial slipped by 0.73%. Conversely, Taiwan Semiconductor Manufacturing Company appreciated by 0.47%. On the other hand, United Microelectronics Corporation decreased significantly by 2.47%, Hon Hai Precision fell by 1.06%, and Largan Precision rose by 0.40%. Catcher Technology saw a 1.90% downturn, MediaTek made a substantial gain of 2.17%, Delta Electronics strengthened by 1.44%, and Novatek Microelectronics climbed by 1.14%. Formosa Plastics and Nan Ya Plastics experienced sharper declines, falling by 2.19% and 3.17%, respectively, while Asia Cement slipped by 0.23%. Mega Financial, CTBC Financial, and Fubon Financial remained unchanged.
In the United States, Wall Street closed slightly lower. Major stock indexes started higher on Friday but soon fell, remaining mostly in negative territory, with the exception of the NASDAQ, which eventually turned positive.
The Dow Jones Industrial Average edged down by 86.04 points or 0.20 percent to close at 43,828.06, while the NASDAQ gained 23.92 points or 0.12 percent, finishing at 19,926.72. The S&P 500 dropped marginally by 0.16 points or 0.00 percent, ending at 6,051.09.
For the week, the NASDAQ rose by 0.3 percent, while the S&P 500 fell by 0.6 percent, and the Dow Jones experienced a steeper drop of 1.8 percent.
Early gains on Wall Street were partly driven by positive earnings news from Broadcom (AVGO), which reported better-than-expected results for its fiscal fourth quarter and projected continued strong demand for its custom AI chips. However, buying interest waned as investors focused on the anticipated Federal Reserve meeting. Expectations are high for a 25-basis-point interest rate cut, and traders are keenly awaiting guidance from the Fed on any future rate reductions.
In the commodities market, oil futures ended the week stronger. Heightened concerns over supply emerged after new sanctions against Iran and Russia, pushing West Texas Intermediate Crude Oil for January delivery up by $1.27, or 1.8 percent, to settle at $71.29 a barrel.
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