Plus   Neg

More Pain Predicted For Taiwan Stock Market

The Taiwan stock market headed south again on Monday, one session after it had snapped the nine-day losing streak in which it had tumbled nearly 450 points or 4.5 percent. The Taiwan Stock Exchange now rests just above the 10,470-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is broadly negative on continuing concerns over the trade dispute between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The TSE finished modestly lower on Monday following mixed performances from the financial shares, technology stocks and cement companies.

For the day, the index dipped 22.13 points or 0.21 percent to finish at 10,472.36 after trading between 10,440.77 and 10,514.05.

Among the actives, Cathay Financial rose 0.13 percent, while Mega Financial skidded 1.36 percent, CTBC Financial collected 0.25 percent, First Financial retreated 1.15 percent, E Sun Financial sank 0.40 percent, Taiwan Semiconductor Manufacturing Company dropped 0.99 percent, United Microelectronics Corporation plunged 2.26 percent, Hon Hai Precision added 0.82 percent, Catcher Technology surged 5.57 percent, MediaTek spiked 2.05 percent, Asia Cement lost 0.49 percent, Taiwan Cement was up 0.11 percent, Formosa Plastic declined 1.37 percent and Largan Precision and Fubon Financial were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and continued to head south throughout the day, extending last week's losses.

The Dow shed 391.00 points or 1.49 percent to 25,896.44, while the NASDAQ lost 95.73 points or 1.20 percent to 7,863.41 and the S&P 500 fell 35.96 points or 1.23 percent to 2,882.69.

The sell-off on Wall Street came amid worries about a prolonged trade war between the U.S. and China after President Donald Trump recently indicated he feels no sense of urgency to resolve the dispute.

Concerns about the impact of increasingly violent protests in Hong Kong also weighed on stocks, with the Hong Kong International Airport canceling all departing flights due to the disruption caused by protesters.

The geopolitical concerns increased the appeal of safe haven assets like bonds, resulting in a steep drop in U.S. treasury yields. The yield on the benchmark ten-year note tumbled to its lowest closing level in almost three years.

Crude oil prices were higher Monday on speculation production cuts by OPEC and fewer shipments from Saudi Arabia will outweigh concerns about near term energy demand outlook. West Texas Intermediate crude oil futures for September ended up $0.43 or 0.8 percent at $54.93 a barrel.

For comments and feedback contact: editorial@rttnews.com

Follow RTT