Rebound Expected For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has finished lower in five straight sessions, tumbling more than 4,050 points or 9 percent along the way. The Taiwan Stock Exchange now sits just beneath the 42,950-point plateau although it's overdue for support on Thursday.

The global forecast for the Asian markets is positive on plummeting oil prices following the U.S. midterm elections. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion.

The TSE finished modestly lower on Wednesday as losses from the financial and electronics companies were mitigated by support from the chemicals and industrials.

For the day, the index sank 358.63 points or 0.83 percent to finish at 42,948.91 after trading between 41,855.82 and 43,741.54.

The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and stayed firmly in the green throughout the trading day, ending near session highs.

The Dow surged 1,569.40 points or 3.03 percent to finish at 53,356.12, while the NASDAQ jumped 364.50 points or 1.44 percent to close at 25,736.51 and the S&P 500 rallied 119.70 points or 1.58 percent to end at 7,688.62.

The rally on Wall Street was a positive reaction to the Democrats' decisive victory in the midterm elections on Tuesday after they won control of both the House and Senate after flipping several seats in traditionally Republican states.

In U.S. economic news, payroll processor ADP said private sector employment in the U.S. grew by more than expected in October. Also, the Institute for Supply Management said service sector growth saw a modest slowdown last month.

Crude oil prices tumbled on Wednesday, losing the geopolitical risk premium as a comfortable victory for the Democrat party in the U.S. midterm elections eased concerns of renewed U.S.-Iran escalation. West Texas Intermediate crude for December delivery was down $8.39 or 8.73 percent at $87.70 per barrel.

Closer to home, Taiwan will release October numbers for consumer prices later today; in September, overall inflation was up 0.17 percent on month and 2.73 percent on year.