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Tech Shares Expected To Weigh On Taiwan Stock Market

Ahead of Wednesday's National Day holiday, the Taiwan stock market had halted the five-day losing streak in which it had surrendered nearly 600 points or 5.5 percent. The Taiwan Stock Exchange now rests just above the 10,465-point plateau, although it's expected to see renewed selling pressure on Thursday.

The global forecast for the Asian markets is broadly negative thanks to growing concerns over growth, trade and interest rates. The European and U.S. markets were firmly in the red and the Asian bourses are expected to open in similar fashion.

The TSE finished slightly higher on Tuesday following gains from the cement stocks and financial shares, while the technology companies were mixed.

For the day, the index gained 10.90 points or 0.10 percent to finish at 10,466.83 after trading between 10,428.97 and 10,503.10 on turnover of 120.63 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company added 0.21 percent, while Catcher Technology plunged 4.05 percent, Largan Precision advanced 2.28 percent, Hon Hai Precision shed 0.26 percent, MediaTek skidded 2.14 percent, Cathay Financial collected 0.96 percent, E. Sun Financial climbed 1.36 percent, CTBC Financial perked 0.89 percent, Mega Financial spiked 2.04 percent, Fubon Financial dipped 0.19 percent, Taiwan Cement gathered 0.75 percent, Asia Cement was up 0.64 percent, China Steel added 0.40 percent and Taiwan Steel Union was unchanged.

The lead from Wall Street is brutal as stocks saw substantial weakness on Wednesday, with the tech-heavy NASDAQ tumbling to a three-month closing low.

The Dow shed 831.83 points or 3.15 percent to 25,598.74, while the NASDAQ plunged 315.97 points or 4.08 percent to 7,422.05 and the S&P tumbled 94.66 points or 3.29 percent to 2,785.68.

Technology stocks led the way lower on Wall Street, with Netflix (NFLX), Amazon (AMZN), Apple (AAPL) and Facebook (FB) all posting significant losses on the day.

The sell-off came amid lingering concerns about the outlook for interest rates following a recent increase in treasury yields. Treasury yields moved higher after the Labor Department reported a rebound in producer prices in September.

The Federal Reserve raised interest rates by a quarter point to 2 to 2.25 percent last month, marking the third rate hike this year. The Fed's projections point to one more increase in rates this year and three rate hikes next year.

Crude oil prices drifted lower on Wednesday, amid prospects of a drop in crude demand due to weak global economic growth outlook. Crude oil futures for November ended down $1.79 or 2.4 percent at $73.17 a barrel.

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