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More Pain Predicted For Taiwan Stock Market

The Taiwan stock market moved definitively lower again on Monday, one session after it had halted the seven-day losing streak in which it had plunged more than 2,350 points or 24 percent. The Taiwan Stock Exchange now rests just above the 8,890-point plateau and it's expected to sink further at the open of Tuesday's trade.

The global forecast for the Asian markets remains negative on concerns about the effect of the coronavirus on the global economy. The European and U.S. markets were down and the Asian bourses figure 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 retreated 344.06 points or 3.73 percent to finish at 8,890.03 after trading between 8,750.14 and 9,029.52.

Among the actives, Cathay Financial slid 2.71 percent, while Mega Financial gave away 3.40 percent, CTBC Financial plunged 5.56 percent, Fubon Financial retreated 4.00 percent, First Financial tanked 3.75 percent, E Sun Financial declined 3.64 percent, Taiwan Semiconductor Manufacturing Company shed 5.56 percent, United Microelectronics Corporation fell 0.72 percent, Hon Hai Precision dropped 4.66 percent, Largan Precision lost 3.50 percent, Catcher Technology sank 3.19 percent, MediaTek jumped 2.33 percent, Asia Cement dipped 2.81 percent, Taiwan Cement was down 2.30 percent and Formosa Plastic eased 3.05 percent.

The lead from Wall Street is soft with a dose of volatility as stocks saw wild swings again on Monday. The NASDAQ peeked into positive territory a couple of times, but all three major averages finished in the red.

The Dow sank 754.38 points or 3.93 percent to finish at 18,419.60, while the NASDAQ lost 56.67 points or 0.82 percent to 6,822.85 and the S&P 500 fell 86.44 points or 3.75 percent to 2,21848.

After opening sharply lower, the markets got a lift when the Federal Reserve announced extensive new measures to support the economy - saying that it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.

The measures include an unlimited expansion of the Fed's asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities in unspecified large amounts.

But the markets resumed their downward march in afternoon trade as the virus continues to spread.

Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. West Texas Intermediate Crude oil futures for May ended up $0.73 or 3.2 percent at $23.36 a barrel.

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