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Tech Shares Likely To Drag Taiwan Bourse Further

The Taiwan stock market has finished lower in four straight trading days, plummeting almost 535 points or 5 percent along the way. The Taiwan Stock Exchange now rests just beneath the 10,520-point plateau and the losing streak may continue on Monday.

The global forecast for the Asian markets is negative on growing concerns about the outlook for interest rates. The European and U.S. markets were firmly lower and the already oversold Asian bourses are tipped to at least open in the red.

The TSE finished sharply lower on Friday following heavy losses among the technology stocks and the financial shares.

For the day, the index plunged 201.79 points or 1.88 percent to finish at 10,517.12 after trading between 10,446.94 and 10,669.63 on turnover of 148.80 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company lost 1.57 percent, while United Microelectronics Corporation skidded 2.65 percent, AsusTek Computer faded 0.60 percent, MediaTek tumbled 3.10 percent, Hon Hai Precision dipped 0.79 percent, Largan Precision plummeted 7.28 percent, Taiwan Cement dipped 0.25 percent, Asia Cement jumped 1.13 percent, China Steel retreated 1.18 percent, Formosa Plastic declined 1.77 percent, Chunghwa Telecom added 0.93 percent, Mega Financial was down 1.83 percent, CTBC Financial shed 1.09 percent, Fubon Financial contracted 1.36 percent and Cathay Financial dropped 0.97 percent.

The lead from Wall Street is soft as stocks opened sharply lower on Friday and remained in the red throughout the session, extending recent losses.

The Dow slid 180.43 points or 0.68 percent to 26,447.05, the NASDAQ tumbled 91.06 points or 1.16 percent to 7,788.45 and the S&P fell 16.04 points or 0.55 percent to 2,885.57. For the week, the eased 0.1 percent, the S&P lost 1 percent and the NASDAQ plunged 3.2 percent.

The weakness on Wall Street came as treasury yields extended a recent upward move following the release of the monthly jobs report, adding to concerns about the outlook for interest rates.

While the Labor Department report showed weaker than expected job growth in September, the jump in employment in August was upwardly revised and the unemployment rate fell to 3.7 percent for its lowest level since 1969.

Also, the Commerce Department showed the U.S. trade deficit widened in August, reflecting an increase in imports and a decrease in exports.

Crude oil prices retreated after edging higher early on in the session on Friday, as traders weighed the decision of Russia and Saudi Arabia to increase output. Crude oil futures for November ended at $74.34 a barrel, gaining a penny.

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