The Taiwan stock market on Tuesday ended the modest two-day winning streak in which it had gathered almost 30 points or 0.3 percent. The Taiwan Stock Exchange now rests just above the 11,010-point plateau, although it's expected to see a mild recovery on Wednesday.
The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling - also aided by a jump in crude oil prices. The European and U.S. markets were up, and the Asian bourses are expected to open in similar fashion.
The TSE finished modestly lower on Tuesday following losses from the technology stocks and mixed performances from the financials and steel producers.
For the day, the index sank 36.06 points or 0.33 percent to finish at 11,010.84 after trading between 10,981.04 and 11,020.78 on turnover of 109.69 billion Taiwan dollars.
Among the actives, Cathay Financial lost 0.75 percent, while Fubon Financial collected 0.19 percent, Mega Financial dipped 0.39 percent, Taiwan Semiconductor Manufacturing Company shed 0.78 percent, Largan Precision plummeted 4.18 percent, Hon Hai Precision fell 0.32 percent, United Microelectronics Corporation dipped 0.33 percent, MediaTek spiked 2.54 percent, China Steel retreated 0.63 percent, Taiwan Steel Union perked 1.15 percent and Formosa Plastics jumped 1.94 percent.
The lead from Wall Street is cautiously optimistic as stocks saw mild upside on Tuesday, reversing the damage from the two previous sessions.
The Dow added 116.36 points or 0.47 percent to 24,727.27, while the NASDAQ gained 20.06 points or 0.27 percent to 7,364.30 and the S&P was up 4.02 points or 0.15 percent to 2,7167.94.
The retrained trade came as investors remained nervous about numerous geopolitical flashpoints, turnover in the Trump Administration and Wednesday's U.S. interest rate decision.
With the Fed widely expected to raise interest rates by 25 basis points, traders will keep an eye on the accompanying statement for clues about the outlook for future rate hikes. New Fed Chairman Jerome Powell's first press conference as head of the central bank is also likely to attract considerable attention.
Crude oil futures rose sharply Tuesday as tensions between Iran and Saudi Arabia threatened supplies from the region. Concerns about Venezuelan output also fueled the rally. May WTI crude, the new front-month contract, settled at $63.54, up $1.41 or 2.3 percent.
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