The Taiwan stock market has closed lower now in three straight trading days, falling more than 200 points or 2.9 percent in that span. The Taiwan Stock Exchange finished just above the 7,070-point plateau, and now analysts are forecasting a fairly static performance at the opening of trade on Monday.
The global forecast for the Asian markets is mixed and flat, with analysts expecting little movement as the U.S. bourses will remain closed for the Memorial Day holiday. Providing mild support was a report from Reuters and the University of Michigan showing that U.S. consumer sentiment in May had improved by more than expected. But lingering concerns about the financial situation in Europe remain likely offset any positive sentiment. The European markets were slightly higher and the U.S. bourses were slightly lower - and the Asian markets figure to split the difference.
The TSE finished modestly lower again on Friday following losses from the textile, technology, construction, food, plastic, cement, finance and paper sectors.
For the day, the index gave away 53.26 points or 0.74 percent to finish at 7,071.63 after trading between 7,066.39 and 7,139.76 on turnover of 54.50 billion Taiwan dollars.
Among the decliners, Ta Chong Bank plunged by the 7 percent daily maximum, while Far Eastern New Century plummeted 5.98 percent, HTC shed 3.95 percent and Hon Hai Precision Industry lost 1.41 percent.
The lead from Wall Street offers mild pessimism as stocks turned in another lackluster performance on Friday, with many traders getting a head start on the long weekend. The major averages bounced back and forth across the unchanged line after closing mixed in each of the three previous sessions.
Traders largely shrugged off a report from Reuters and the University of Michigan showing that U.S. consumer sentiment in May had improved by more than previously estimated. The consumer sentiment index for May was upwardly revised to 79.3 from the mid-month reading of 77.8. The upward revision surprised economists, who had expected no change. The index now is well above the final April reading of 76.4 and is at its highest level since October of 2007.
Lingering concerns about the financial situation in Europe likely offset any positive sentiment generated by the better than expected reading on consumer sentiment.
Among individual stocks, shares of Talbots (TLB) tumbled 41 percent after private equity firm Sycamore Partners said it is not prepared to acquire the women's apparel retailer. Verifone (PAY) also posted a steep loss after the electronic payments company reported better than expected second quarter earnings but forecast full year results.
Meanwhile, Frontline (FRO) posted a strong gain after the oil tanker operator reported better than expected first quarter earnings and provided upbeat guidance. Futures exchange operator CME Group (CME) also ended the day higher after announcing a 5-for-1 split of its common stock in the form of a 400 percent stock dividend.
The major averages eventually ended the day in the red as the Dow fell 74.92 points or 0.6 percent to finish at 12,454.83, while the NASDAQ edged down 1.85 points or 0.1 percent to end at 2,837.53 and the S&P 500 slipped 2.86 points or 0.2 percent to 1,317.82. Despite the losses on the day, the major averages all moved higher for the week, bouncing off last Friday's four-month lows. The Dow rose by 0.7 percent, while the NASDAQ and the S&P 500 advanced by 2.1 percent and 1.7 percent, respectively.
On the economic front, Taiwan's economic growth outlook for 2012 was revised down to 3.03 percent from the previously estimated 3.38 percent, the Director-General of Budget Accounting and Statistics said on Friday.
The revision reflected increasing risks to the economy's growth prospects, stemming from the Eurozone debt crisis and a possible hard landing of the Chinese economy. Exports are expected to improve only moderately this year, alongside a weak expansion in domestic demand.
In the first quarter, the gross domestic product grew 0.39 percent year-on-year compared to the 0.36 percent growth reported last month. The real GDP growth rate for the fourth quarter of 2011 was revised to 1.85 percent from previous estimate of 1.89 percent.
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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.