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Taiwan Stock Market May Extend Friday's Losses

The Taiwan stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 400 points or 2.5 percent. The Taiwan Stock Exchange now sits just beneath the 17,320-point plateau and it may take further damage on Monday.

The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets are tipped to follow suit.

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

For the day, the index shed 72.07 points or 0.41 percent to finish at the daily low of 17,318.54 after peaking at 17,417.50.

Among the actives, Cathay Financial sank 0.74 percent, while Mega Financial lost 0.46 percent, CTBC Financial fell 0.67 percent, Fubon Financial retreated 1.38 percent, First Financial dropped 0.90 percent, E Sun Financial slid 0.58 percent, Taiwan Semiconductor Manufacturing Company shed 0.50 percent, United Microelectronics Corporation tanked 2.06 percent, Catcher Technology tumbled 1.92 percent, MediaTek and Hon Hai Precision both skidded 1.33 percent, Formosa Plastic surrendered 1.45 percent, Asia Cement declined 1.37 percent, Taiwan Cement was down 0.97 percent and Largan Precision and Delta Electronics were unchanged.

The lead from Wall Street is decidedly negative as stocks opened lower on Friday and remained in the red throughout the session.

The Dow plunged 533.37 points or 1.58 percent to finish at 33,290.08, while the NASDAQ dropped 130.97 points or 0.92 percent to end at 14,030.38 and the S&P 500 sank 55.41 points or 1.31 percent to close at 4,166.45.

For the week, the Dow plunged 3.4 percent, the NASDAQ dipped 0.3 percent and the S&P fell 1.9 percent.

Concerns about the outlook for monetary policy continued to weigh on the markets following recent Federal Reserve comments. The Fed's forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.

In addition, Federal Reserve Bank of St Louis President James Bullard suggested that rates could be hiked as early as next year, touching off a wave of selling.

Crude oil prices moved higher on Friday amid optimism about energy demand in the U.S. thanks to reopening of businesses after lockdowns. West Texas Intermediate Crude oil futures for July rose $0.60 or 0.8 percent at $71.64 a barrel. WTI Crude oil futures gained 1 percent in the week.

Closer to home, Taiwan will provide May numbers for export orders later today, with forecasts suggesting an increase of 40.15 percent following the 42.6 percent spike in April.

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