The Taiwan stock market on Friday wrote a finish to the three-day winning streak in which it had collected more than 180 points or 2.6 percent. The Taiwan Stock Exchange finished just above the 7,120-point plateau, and now analysts are forecasting additional selling pressure for the market when it kicks off trade on Monday.
The global forecast for the Asian markets suggests mild selling pressure on Monday, with continued concerns over the European debt situation offset by surprisingly strong U.S. employment data. Technology stocks figure to provide support, while gold and steel companies are likely to see selling pressure. The European markets finished firmly in the red on Friday, and the U.S. bourses were mixed but little changed - and the Asian markets are expected to split the difference.
The TSE finished slightly lower on Friday as losses from the finance, cement and textile sectors were offset by support from the construction and food sectors.
For the day, the index shed 10.35 points or 0.14 percent to finish at 7,120.51 after trading between 7,090.47 and 7,139.04 on turnover of 87.40 billion Taiwan dollars.
Among the actives, Cathay Financial lost 1.82 percent, Chinatrust Financial fell 3.32 percent and Far Eastern New Century dropped 2.11 percent, while Catcher Technology surged by the 7 percent daily maximum and Largan Precision climbed 2.73 percent.
The lead from Wall Street is a mixed message as stocks turned in a lackluster performance on Friday, shrugging off another upbeat U.S. employment report amid continued concerns about the ongoing European debt crisis. A lack of conviction among traders contributed to the choppy trading.
The lack of direction came despite a report from the Labor Department showing that the U.S. economy added 200,000 jobs in December following a downwardly revised increase of 100,000 jobs in November. Economists had expected an increase of 150,000 jobs. The unemployment rate fell to 8.5 percent in December from a revised 8.7 percent in November. With the drop, the unemployment rate fell to its lowest level since 8.3 percent in February of 2009.
Continued concerns about the financial situation in Europe overshadowed the upbeat U.S. jobs data, however, with selling pressure generated by news that Fitch Ratings downgraded Hungary to junk status. Fitch attributed the downgrade to a further deterioration in the country's fiscal and external financing environment and growth outlook. Adding to the concerns, European Central Bank said overnight deposits by European commercial banks reached a new record high of 455.3 billion euros.
Among individual stocks, Family Dollar (FDO) fell by 7.5 percent after the discount retailer reported first quarter earnings of $0.68 per share on revenues of $2.15 billion. Analysts had expected the company to earn $0.68 per share on revenues of $2.17 billion. The company reaffirmed its 2012 earnings guidance.
The major averages eventually ended the session mixed, with the tech-heavy NASDAQ edging up 4.36 points or 0.2 percent to 2,674.22, while the Dow fell 55.78 points or 0.5 percent to 12,359.92 and the S&P 500 slipped 3.25 points or 0.3 percent to 1,277.81. Despite the mixed bag, the major averages all moved higher for the holiday-shortened week due to the rally on Tuesday. The NASDAQ jumped by 2.7 percent, while the Dow and the S&P 500 rose by 1.2 percent and 1.6 percent, respectively.
On the economic front, Taiwan will on Monday announce December numbers for imports, exports and trade balance. Imports are expected to ease 1.0 percent on year after shedding 10.4 percent in November. Exports are called higher by an annual 3.7 percent after gathering 1.3 percent in the previous month. The trade balance is expected to reflect a surplus of $2.74 billion, down from $3.2 billion a month earlier.
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Market Analysis
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.