The Taiwan stock market has ended lower now in consecutive trading days, shedding almost 140 points or 1.9 percent along the way. The Taiwan Stock Exchange ended just below the 7,390-point plateau, and now analysts are forecasting further damage when the market opens on Thursday.
The global forecast for the Asian markets is fairly negative on persistent debt concerns around the world. As a result, financials and brokerages are expected to fall under pressure, along with steel companies. The European markets finished mixed and the U.S. bourses were firmly in the red, and the Asian markets are also expected to open to the downside.
The TSE finished sharply lower on Wednesday following losses among the cement, finance, plastic, food, construction and technology sectors.
For the day, the index plummeted 103.54 points or 1.38 percent to finish at 7,387.52 after trading between 7,385.13 and 7,541.68 on turnover of 86.99 billion Taiwan dollars.
Among the decliners, Mega Financial shed 3.18 percent and Fubon Financial lost 2.97 percent.
The lead from Wall Street suggests consolidation as stocks managed to recover from a sharp drop at the start of trading on Wednesday, but selling pressure re-emerged late in the day following remarks from Fitch Ratings, pulling the major averages sharply lower going into the close.
The late day sell-off came as ratings agency Fitch predicted that U.S. banks could be greatly affected if the debt contagion continues to spread beyond the stressed European markets such as Greece, Ireland, Italy, Portugal, and Spain.
Fitch noted that large U.S. banks have been reducing direct exposure to stressed markets for well over a year but warned that broader ramifications of distress in the markets will have meaningful consequences beyond direct exposure if not contained.
Concerns about the financial situation in Europe contributed to the initial weakness on Wall Street, with the Bank of England and the Bank of Japan both warning that the ongoing crisis could have a negative impact on domestic economic activity.
Disappointing Spanish GDP data showing stagnant economic activity also generated some negative sentiment, with the data likely to lead to higher bond yields during a Spanish bond auction on Thursday.
Meanwhile, new Italian Prime Minister Mario Monti unveiled his new cabinet and new Greek Prime Minister Lucas Papademos won a confidence vote in parliament.
Upbeat U.S. economic data helped to offset the early selling pressure, however, with a report from the Federal Reserve showing that industrial production rose by 0.7 percent in October, exceeding economist estimates for a 0.4 percent increase. A separate report from the National Association of Home Builders showed an unexpected jump in homebuilder confidence in November.
The major averages ended the day firmly in negative territory, just off their lows for the session. The Dow plunged 190.57 points or 1.6 percent at 11,905.59, the NASDAQ tumbled 46.59 points or 1.7 percent to 2,639.61 and the S&P 500 plummeted 20.90 points or 1.7 percent to 1,236.91.
On the corporate front, Taiwan-based ChipMOS Technologies on Wednesday posted a third-quarter profit of 139.8 million New Taiwan dollars, or 5.11 New Taiwan dollars per share, compared to last year's 51.0 million New Taiwan dollars, or 1.55 New Taiwan dollars per share. In U.S. dollar terms, third-quarter profit went up to $4.6 million, or $0.17 per share, from $1.6 million, or $0.05 per share. Quarterly revenues fell to 4.46 billion New Taiwan dollars, or $146.5 million, from 4.72 billion New Taiwan dollars, or $154.9 million a year ago.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.