Taiwan Stock Market Draws Flat Lead For Tuesday's Trade

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(RTTNews) – The Taiwan stock market on Monday snapped the three-day losing streak in which it had stumbled almost 370 points or 2 percent. The Taiwan Stock Exchange now sits just beneath the 18,240-point plateau and it’s looking at a steady start on Tuesday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference. The TSE finished modestly higher on Monday following gains from the financial shares and a mixed picture from the technology stocks.

For the day, the index gained 69.62 points or 0.38 percent to finish at 18,239.38 after trading between 18,043.97 and 18,243.26. Among the actives, Cathay Financial was up 0.16 percent, while Mega Financial dipped 0.14 percent, CTBC Financial collected 0.32 percent, Fubon Financial added 0.92 percent, First Financial gained 0.40 percent, Taiwan Semiconductor Manufacturing Company climbed 1.42 percent, United Microelectronics Corporation dropped 0.80 percent, Hon Hai Precision tumbled 1.88 percent, Largan Precision fell 0.40 percent, Catcher Technology sank 0.93 percent, MediaTek shed 0.45 percent, Delta Electronics rose 0.18 percent, Taiwan Cement lost 0.32 percent and E Sun Financial, Formosa Plastic and Asia Cement were unchanged.

The lead from Wall Street is mostly soft as the major averages opened sharply lower on Monday. They showed improvement as the session progressed, with the NASDAQ creeping up over the unchanged line.

The Dow dropped 162.79 points or 0.45 percent to finish at 36,068.87, while the NASDAQ rose 6.93 points or 0.05 percent to close at 14,942.83 and the S&P 500 dipped 6.74 points or 0.14 percent to end at 4,670.29.

The early weakness on Wall Street reflected lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood the Federal Reserve will raise interest rates in the near future.

Treasury yields have moved sharply higher in recent sessions, with the yield on the benchmark ten-year note reaching its highest levels since January of 2020.

The jump in yields comes amid a more hawkish tone from the Fed after the minutes of the central bank’s latest meeting indicated plans to accelerate monetary policy normalization.

Crude oil prices drifted lower Monday on concerns about the outlook for energy demand due to the rapid surge in the Omicron variant of the coronavirus across the globe. A firm dollar amid rising prospects for a series of interest rate hikes weighed as well on crude oil prices. West Texas Intermediate Crude futures for February slipped $0.67 or 0.9 percent at $78.23 a barrel.