The Taiwan stock market has fallen in two straight sessions now, giving away more than 105 points or 1.5 percent in that span. The Taiwan Stock Exchange finished just above the 7,375-point plateau, and now analysts are forecasting further damage at the opening of trade on Tuesday.
The global forecast for the Asian markets remains grim thanks to ongoing concerns about the political uncertainty in Greece. As political parties in Greece have failed to form a coalition government, fresh elections would mean weeks of uncertainty in the Eurozone over Greece's continued membership in the single currency zone. The downside in Asia may be limited by bargain-hunting, however, following heavy damage in the previous session. The European and U.S. markets finished firmly in the red, and the Asian bourses are tipped to open in similar fashion.
The TSE finished modestly lower on Monday as losses from the plastic, construction, cement, paper, technology and finance sectors was mitigated by support from the food and textile stocks.
For the day, the index fell 24.19 points or 0.32 percent to finish at 7,377.18 after trading between 7,412.59 and 7,346.86 on turnover of 46.76 billion Taiwan dollars. There were 2,683 decliners and 1,040 gainers, with 435 stocks finishing unchanged.
The lead from Wall Street suggests further consolidation as stocks saw considerable weakness on Monday. The losses extended a recent downward trend for the markets, which have moved lower for most of May. With Monday's losses, the major averages all ended the session at their worst closing levels in over three months.
The weakness followed lingering concerns about the political uncertainty in Greece, as the debt-plagued nation could be forced to hold a new round of elections due to lawmakers' inability to form a coalition government.
Traders also kept a close eye on developments in China, where the central bank announced over the weekend that it would lower the reserve requirement for banks by 50 basis points in a bid to inject more liquidity into the system. The move added to recent concerns about the outlook for growth in China, the world's second largest economy behind the U.S.
In corporate news, shares of Yahoo (YHOO) bucked the downtrend after the online media giant announced the resignation of CEO Scott Thompson, who left the company over a resume padding scandal. The company named Ross Levinsohn as interim CEO. Yahoo also said Fred Amoroso has been named Chairman of the Board of Directors, replacing Roy Bostock.
The major U.S. averages finished sharply lower on Monday as the Dow fell 125.25 points or 1 percent to finish at 12,695.35, while the NASDAQ dropped 31.24 points or 1.1 percent to end at 2,902.58 and the S&P 500 slid 15.04 points or 1.1 percent to 1,338.35.
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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.