logo
Plus   Neg
Share
Email

Taiwan Shared Tipped To Open Under Pressure

The Taiwan stock market has moved lower in four straight sessions, skidding almost 450 points or 4.2 percent along the way. The Taiwan Stock Exchange now rests just beneath the 10,560-point plateau and it's expected to extend its losses again on Tuesday.

The global forecast for the Asian markets is broadly negative on concerns of a full-fledged trade war between the U.S. and China. The European and U.S. markets were firmly in the red and the Asian bourses are expected to open in similar fashion.

The TSE finished sharply lower on Monday following losses from the financial shares, technology stocks and cement companies.

For the day, the index tumbled 154.70 points or 1.44 percent to finish at 10,558.29 after trading between 10,549.06 and 10,693.44.

Among the actives, Cathay Financial dropped 2.89 percent, while Fubon Financial shed 1.79 percent, CTBC Financial fell 0.71 percent, Mega Financial dipped 0.34 percent, First Financial retreated 0.46 percent, Formosa Plastic and AsusTek Computer both sank 0.91 percent, Taiwan Semiconductor Manufacturing Company skidded 2.15 percent, United Microelectronics Corporation declined 1.89 percent, Hon Hai Precision Industry tumbled 2.99 percent, Largan Precision plunged 4.60 percent, Catcher Technology plummeted 6.03 percent, MediaTek was down 4.02 percent, Asia Cement slid 0.72 percent and Taiwan Cement lost 1.18 percent.

The lead from Wall Street is brutal as stocks moved sharply lower on Monday, with the Dow sliding to a three-month closing low and the NASDAQ and S&P 500 hitting one-month lows.

The Dow shed 617.38 points or 2.38 percent to 25,324.99, while the NASDAQ plummeted 269.92 points or 3.41 percent to 7,647.02 and the S&P 500 fell 69.53 points or 2.41 percent to 2,811.87.

The sell-off on Wall Street came after China announced plans to raise tariffs on $60 billion worth of U.S. goods, shrugging off a warning from U.S. President Donald Trump. The move by China comes in retaliation for Trump's recent decision to raise tariffs on approximately $200 billion worth of Chinese goods to 25 percent from 10 percent.

Trump has previously threatened to raise tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.

Crude oil futures settled notably lower Monday as worries about global growth following an escalation in U.S.-China trade tensions raised concerns about energy demand. West Texas Intermediate crude oil futures for June ended down $0.62 or 1 percent at $61.04 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT