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Lower Open Predicted For Taiwan Stock Market

The Taiwan stock market turned emphatically lower again on Thursday, one session after it had ended 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 9,800-point plateau and it may extend its misery on Friday.

The global forecast for the Asian markets continues to be weak, thanks to concerns over global growth and interest rates - while tumbling crude oil prices add to the soft sentiment. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The TSE finished sharply on Thursday in the mark's biggest single-day drop ever. Damage was widespread but particularly strong among the technology stocks, financial shares and cement companies.

For the day, the index plummeted 660.72 points or 6.31 percent to finish at 9,806.11 after trading between 9,797.93 and 10,272.04 on turnover of 205.33 billion Taiwan dollars.

Among the actives, Cathay Financial slipped 4.39 percent, while Fubon Financial lost 3.59 percent, CTBC Financial retreated 7.03 percent, Mega Financial declined 3.81 percent, Catcher Technology dropped 9.90 percent, Largan Precision cratered 9.89 percent, Taiwan Semiconductor Manufacturing Company plummeted 7.26 percent, MediaTek shed 7.88 percent, Hon Hai Precision plunged 6.91 percent, Chunghwa Telecom eased 0.91 percent, Formosa Plastics tumbled 9.25 percent, Asia Cement was down 3.54 percent, Taiwan Cement skidded 6.12 percent, China Steel gave away 4.54 percent and Taiwan Steel Union lost 5.52 percent.

The lead from Wall Street is negative as stocks opened lower on Thursday and showed wild swings before finishing firmly in the red.

The Dow shed 545.77 points or 2.13 percent to finish at 25,052.97, while the NASDAQ lost 92.99 points or 1.25 percent to 7,329.06 and the S&P fell 57.31 points or 2.06 percent to 2,728.37.

The lower close on Wall Street came even though strength in the bond market led to a significant drop by treasury yields. Even with the decrease in yields, traders remained concerned about the outlook for the interest rates as well as the escalating trade war between the U.S. and China.

Treasuries benefited from the release of a report from the Labor Department showing consumer prices rose by less than expected in September. Also, the Labor Department noted a modest increase in first-time claims for U.S. jobless benefits in the week ended October 6.

Crude oil prices tumbled on Thursday after data showed U.S. crude stockpiles to have risen for a third straight week. Crude oil futures for November delivery ended down $2.20 or 3 percent at $70.97 a barrel.

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