Taiwan Market Retreats as Tech Stocks Weigh Amid U.S. Optimism

The Taiwan stock market declined after two days of gains, primarily driven by losses in technology stocks. However, a positive global outlook and potential rate cuts by the Fed could boost markets in the near future.

Date: 10-09-2024

AI Rating: 6

The Taiwan stock market experienced a decline on Monday, snapping a two-day winning streak where it gained over 440 points. It finished lower by 290.75 points or 1.36 percent at 21,144.44. This retreat can be attributed to the losses in technology stocks such as Taiwan Semiconductor Manufacturing Company (down 2.07 percent) and Hon Hai Precision (down 2.55 percent).

On a positive note, the global forecast for Asian markets remains optimistic due to anticipated bargain hunting and favorable outlooks regarding interest rates. The U.S. markets closed solidly higher, which may influence sentiment in Asia positively. Notably, the S&P 500 jumped 62.63 points or 1.16 percent, fueled by traders looking to purchase stocks at reduced prices following previous declines.

Additionally, there’s growing optimism regarding the Federal Reserve potentially lowering interest rates, with the CME Group's FedWatch Tool indicating a 73 percent chance of a 25 basis points cut, which could create a conducive environment for stocks. As interest rates potentially decrease, it may attract investors back to the market, reinforcing upward trends.

Overall, while the Taiwan market faced pressure from technology sector declines, the broader positive sentiment in global markets and interest rate expectations could bolster investor confidence moving forward.

Stocks: TSM HONH CME