(RTTNews) – The Taiwan stock market on Tuesday snapped the three-day winning streak in which it had gathered almost 400 points or 2.3 percent. The Taiwan Stock Exchange now sits just above the 17,180-point plateau and the losses may accelerate on Wednesday.
The global forecast for the Asian markets is soft amid concerns about the outlook for interest rates and the economic recovery. The European and U.S. markets were down sharply and the Asian bourses are tipped to follow that lead.
The TSE finished modestly lower on Tuesday following losses from the technology stocks and cement companies, while the financials were mixed.
For the day, the index retreated 132.33 points or 0.76 percent to finish at 17,181.44 after trading between 17,113.47 and 17,286.89.
Among the actives, Cathay Financial collected 0.51 percent, while Mega Financial rose 0.15 percent, CTBC Financial added 0.66 percent, Fubon Financial lost 0.26 percent, First Financial eased 0.22 percent, Taiwan Semiconductor Manufacturing Company retreated 1.33 percent, United Microelectronics Corporation declined 1.51 percent, Hon Hai Precision dropped 0.93 percent, Largan Precision tanked 2,21 percent, Catcher Technology slid 0.29 percent, MediaTek fell 0.21 percent, Delta Electronics surrendered 2.13 percent, Formosa Plastic rallied 2.24 percent, Asia Cement was down 0.22 percent, Taiwan Cement sank 0.20 percent and E Sun Financial was unchanged.
The lead from Wall Street is broadly negative as the major averages opened solidly in the red on Tuesday and stayed that way throughout the session.
The Dow plummeted 569.38 points or 1.63 percent to finish at 34,299.99, while the NASDAQ plunged 423.29 points or 2.83 percent to close at 14,546.68 and the S&P 500 tumbled 90.48 points or 2.04 percent to end at 4,352.63.
Technology stocks helped lead the markets lower amid a continued advance by treasury yields. Extending the upward move seen since last week’s announcement from the Federal Reserve, the yield on the benchmark ten-year note reached its highest levels in over three months.
The increase in treasury yields, which move opposite of bond prices, came as the Fed has signaled plans to begin scaling back its asset purchases in the near future.
Also contributing to the continued advance by yields, Federal Reserve Chair Jerome Powell warned members of the Senate Banking Committee about upside risks to inflation during testimony Tuesday morning.
Crude oil futures ended lower Tuesday, snapping a five-day winning streak as a sell-off in stock markets and a stronger dollar weighed on the commodity. West Texas Intermediate Crude oil futures for November ended lower by $0.16 or 0.2 percent at $75.29 a barrel.