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Taiwan Stock Market Expected To Open In The Red

The Taiwan stock market has moved lower in three straight sessions, dropping more than 220 points or 2 percent along the way. The Taiwan Stock Exchange now rests just above the 11,530-point plateau and it's got another very weak lead again for Tuesday's trade.

The global forecast for the Asian markets suggests a sharply lower open due to coronavirus fears, although some bargain hunting may take hold as the day progresses. The European and U.S. bourses were firmly in the red and the Asian markets are expected to at least open in similar fashion.

The TSE finished sharply lower on Monday, driven deep into the red by growing fears over the coronavirus.

For the day, the index retreated 151.48 points or 1.30 percent to finish at 11,534.87 after trading between 11,512.08 and 11,615.28.

Among the actives, Cathay Financial sank 1.09 percent, while Mega Financial and CTBC Financial both declined 1.51 percent, Fubon Financial fell 1.53 percent, First Financial slid 1.23 percent, E Sun Financial eased 1.17 percent, Taiwan Semiconductor Manufacturing Company shed 1.54 percent, United Microelectronics Corporation dropped 1.56 percent, Hon Hai Precision lost 1.22 percent, Largan Precision retreated 2.74 percent, Catcher Technology added 0.78 percent, MediaTek tumbled 2.84 percent, Asia Cement dipped 0.22 percent, Taiwan Cement was down 0.58 percent and Formosa Plastic fell 1.37 percent.

The lead from Wall Street is brutal as stocks opened sharply lower on Monday and the losses accelerated as the day progressed.

The Dow fell 1,031.61 points or 3.56 percent to end at 27,960.80, while the NASDAQ lost 355.31 points or 3.71 percent to 9,221.28 and the S&P sank 111.86 points or 3.35 percent to 3,225.89.

The sell-off on Wall Street reflected concerns about the spread of the coronavirus amid a spike in the number of confirmed cases outside of China.

Traders shrugged off concerns about the virus earlier this month, helping propel stocks to new record highs amid optimism the outbreak would quickly be contained. But the continued spread of the virus along with several companies warning about the financial impact seems to have traders reassessing their positions.

Gold stocks were among the few groups that bucked the downtrend as the safe haven precious metal for April delivery soared $27.80 to $1,676.60 an ounce.

Crude oil prices plunged sharply on Monday amid rising concerns for the outlook for energy demand due to the rapidly spreading coronavirus outside China. West Texas Intermediate Crude oil futures for April ended down $1.95 or 3.7 percent at $51.43 a barrel.

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