Taiwan Stock Market May Extend Losing Streak

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(RTTNews) – The Taiwan stock market has finished lower in three straight sessions, sinking almost 250 points or 1.4 percent along the way. The Taiwan Stock Exchange now sits just above the 17,270-point plateau and it’s looking at another red light for Thursday’s trade.

The global forecast for the Asian markets is negative on concerns for overall economic growth amid the latest coronavirus wave. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The TSE finished modestly lower on Wednesday following losses from the technology and cement stocks, while the financials were mixed.

For the day, the index dropped 158.38 points or 0.91 percent to finish at 17,270.49 after trading between 17,167.08 and 17,447.58.

Among the actives, Cathay Financial skidded 1.18 percent, while Mega Financial rose 0.15 percent, CTBC Financial collected 0.22 percent, Fubon Financial lost 0.90 percent, Taiwan Semiconductor Manufacturing Company shed 0.64 percent, United Microelectronics Corporation plunged 3.52 percent, Hon Hai Precision dropped 0.92 percent, Largan Precision tanked 2.81 percent, Catcher Technology surrendered 2.83 percent, MediaTek advanced 1.00 percent, Delta Electronics fell 0.37 percent, Asia Cement sank 0.89 percent, Taiwan Cement slid 0.41 percent and First Financial, E Sun Financial and Formosa Plastic were unchanged.

The lead from Wall Street suggests mild consolidation as the major averages opened lower on Wednesday and largely stayed that was throughout the session, ending with modest losses.

The Dow shed 68.93 points or 0.20 percent to finish at 35,031.07, while the NASDAQ sank 87.69 points or 0.57 percent to close at 15,286.64 and the S&P 500 fell 5.96 points or 0.13 percent to end at 4,514.07.

The weakness on Wall Street partly reflected concerns the rapid spread of the delta variant of the coronavirus may slow the global economic recovery.

Worries about the Federal Reserve scaling back its asset purchases also contributed to the selling pressure. The lower close by stocks also came after the Federal Reserve’s Beige Book said U.S. economic growth downshifted slightly to a moderate pace in early July through August.

The Beige Book also said inflation was reported to be steady at an elevated pace, as half of the districts characterized the pace of price increases as strong, while half described it as moderate.

Crude oil futures settled higher on Wednesday as prices rose on reports of slow progress in the restoration of crude output in the Gulf of Mexico. West Texas Intermediate Crude oil futures for October ended up $0.95 or 1.4 percent at $69.30 a barrel.