Losing Streak May Continue For Taiwan Stock Market

The Taiwan stock market has finished lower in three straight sessions, sinking almost 370 points or 2 percent along the way. The Taiwan Stock Exchange now sits just beneath the 18,170-point plateau and it may open under pressure again on Monday.

The global forecast for the Asian markets suggests mild consolidation following Friday's mixed jobs report from the United States. The European markets were mixed and the U.S. bourse were down and the Asian markets figure to split the difference.

The TSE finished sharply lower on Friday following heavy losses from the technology stocks and mixed performances from the financial shares and cement companies.

For the day, the index dropped 198.14 points or 1.08 percent to finish at 18,169.76 after trading between 18,134.41 and 18,444.12.

Among the actives, Mega Financial collected 0.56 percent, while CTBC Financial added 0.38 percent, Fubon Financial slid 0.26 percent, First Financial advanced 0.81 percent, E Sun Financial climbed 1.40 percent, Taiwan Semiconductor Manufacturing Company retreated 1.55 percent, United Microelectronics Corporation dipped 0.16 percent, Hon Hai Precision shed 0.47 percent, Largan Precision plunged 3.87 percent, Catcher Technology fell 0.31 percent, MediaTek tanked 3.08 percent, Delta Electronics tumbled 2.75 percent, Formosa Plastic sank 0.84 percent, Asia Cement gained 0.45 percent, Taiwan Cement was down 0.32 percent and Cathay Financial was unchanged.

The lead from Wall Street is soft as the major averages opened lower on Friday and then saw wild swings both ways before finally finishing the session in the red.

The Dow dipped 4.84 points or 0.01 percent to finish at 36,231,66, while the NASDAQ sank 145.00 points or 0.96 percent to end at 14,935.90 and the S&P 500 fell 19.02 points or 0.41 percent to close at 4,677.03. For the week, the NASDAQ plunged 4.5 percent, the S&P slumped 1.9 percent and the Dow dipped 0.3 percent.

The continued pullback on Wall Street followed the release of the Labor Department's closely watched monthly jobs report. While the report showed much weaker than expected job growth in the month of December, the unemployment rate still fell by more than expected.

Economists have indicated the report is not likely to alter the Fed's plans to accelerate monetary policy normalization.

Traders subsequently seem concerned the Fed will be raising rates at a time of slowing economic growth as a result of the Omicron variant of the coronavirus.

Crude oil prices drifted lower on Friday, but still finished the week with a strong gain on supply concerns amid escalating unrest in Kazakhstan and outages in Libya. West Texas Intermediate Crude oil futures for February ended down by $0.56 or 0.7 percent at $78.90 a barrel. WTI Crude futures gained 4.9 percent in the week.

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