The Taiwan stock market on Tuesday snapped the four-day winning streak in which it had collected more than 275 points or 2.8 percent. The Taiwan Stock Exchange slid below the 7,885-point plateau, and now investors are bracing for further losses at the opening of trade on Wednesday.
The global forecast for the Asian markets is broadly negative, thanks to renewed concerns about the European financial sector. Not surprisingly, the financials are expected to plummet, while the oil companies, properties and airlines also are likely to be weak. With gold at a fresh record high, the safe haven is expected to provide support. The European and U.S. markets ended sharply lower, and the Asian markets are expected to follow suit.
The TSE finished barely lower on Tuesday as selling pressure from the cement, paper, textile, financial and technology sectors wiped out gains from the chemical and construction stocks.
For the day, the index eased 6.55 points or 0.1 percent to finish at 7,884.40 after trading between 7,876.67 and 7,922.07 on turnover of 126.49 billion Taiwan dollars. There were 2,169 decliners and 1,620 gainers, with 321 stocks finishing unchanged.
Among the actives, Taiwan Semiconductor Manufacturing Co. eased 0.50 percent and Hon Hai Precision shed 0.92 percent, while Prince Housing surged 6.58 percent and Kuo Yang Construction gained 1.65 percent.
The lead from Wall Street is weak as stocks fell by sharp margins to open the Labor Day-shortened week on Tuesday, as profit taking following last week's gains drove the major averages down off of their best closing levels in three weeks. Nonetheless, the pullback came on low volume, with many traders staying away from their desks following the three-day weekend.
Coca-Cola Enterprises, Inc. (CCE) moved moderately higher on the day after the largest bottler of Coca-Cola (KO) beverages raised its full year earnings outlook to a range of $1.78 to $1.82 per share. Earlier, the company had estimated earnings in the range of $1.73 to $1.77 per share.
Meanwhile, Idenix Pharmaceuticals, Inc. (IDIX) fell sharply after saying it received a verbal notice from the FDA placing a clinical hold on the company's IDX184 and IDX320 programs in hepatitis C virus-infected patients.
The markets also digested some key management shifts at a number of major firms. Beckman Coulter, Inc. (BEC) announced that its chairman, president and CEO Scott Garrett has resigned, while Robert Hurley was named the company's interim President and CEO.
Oracle Corp. (ORCL) also revealed that former Hewlett-Packard (HPQ) CEO Mark Hurd has been appointed as its co-president. However, HP has subsequently filed a lawsuit against Hurd based on conflict of interest.
Additionally, Barclays Plc (BCS) named Robert Diamond as its CEO, effective next year. Diamond will succeed John Varley, who intends to step down as CEO and from the Barclays Boards and the Group Executive Committee on March 31, 2011.
The major averages saw some late-day volatility, ending near their session lows. The Dow fell by 107.24 points or 1 percent to end at 10,340.69, the NASDAQ declined by 24.86 points or 1.1 percent to 2,208.89 and the S&P 500 lost 12.67 points or 1.1 percent to close at 1,091.84.
In economic news, Taiwan exports grew 26.6 percent year-on-year in August, following a 38.5 percent increase in July, the Ministry of Finance said on Tuesday. Economists had expected a 25 percent increase in shipments.
Meanwhile, growth in imports outpaced exports by rising 28 percent. This followed a 42.7 percent growth in July. Economists were expecting a 28.5 percent increase.
Total exports amounted to US$24.05 billion during the month and imports totaled US$21.79 billion, resulting in a trade surplus of US$2.26 billion. In July, the surplus was US$2.16 billion. Economists had forecast US$2.2 billion surplus.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.