Tech Shares Likely To Weigh On Taiwan Stock Market

The Taiwan stock market on Friday wrote a finish to the two-day winning streak in which it had gathered almost 200 points or 1.3 percent. The Taiwan Stock Exchange now sits just beneath the 16,410-point plateau and it may take further damage on Monday.

The global forecast for the Asian markets is soft on concerns for the global economy and for the outlook for interest rates, with technology stocks particularly likely to slide. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The TSE finished sharply lower on Friday with damage across the board, especially among the financials, cement companies and technology stocks.

For the day, the index plunged 287.90 points or 1.72 percent to finish at 16,408.20 after trading between 16,312.17 and 16,491.11.

Among the actives, Cathay Financial retreated 1.77 percent, while Mega Financial stumbled 1.25 percent, CTBC Financial eased 0.18 percent, Fubon Financial plummeted 4.30 percent, First Financial sank 0.92 percent, E Sun Financial declined 0.93 percent, Taiwan Semiconductor Manufacturing Company tumbled 2.58 percent, United Microelectronics Corporation skidded 1.12 percent, Hon Hai Precision shed 0.48 percent, Largan Precision tanked 2.74 percent, MediaTek dropped 0.83 percent, Delta Electronics plunged 2.90 percent, Novatek Microelectronics surrendered 2.49 percent, Formosa Plastic fell 0.47 percent, Nan Ya Plastics was down 0.57 percent, Asia Cement fell 0.53 percent, Taiwan Cement slumped 1.10 percent and Catcher Technology was unchanged.

The lead from Wall Street ends up negative as the major averages spent most of Friday bouncing back and forth across the unchanged line before finally settling in the red.

The Dow dropped 98.63 points or 0.30 percent to finish at 32,899.37, while the NASDAQ tumbled 173.04 points or 1.40 percent to end at 12,144.66 and the S&P 500 sank 23.53 points or 0.57 percent to close at 4,123.34. For the week, the NASDAQ slumped 1.5 percent and the Dow and the S&P both eased 0.2 percent.

The lower close on Wall Street followed the closely watched Labor Department report showing stronger than expected job growth in April.

With the report showing continued strength in the labor market, economists predicted the Federal Reserve will now continue with its plans to raise interest rates sharply over the coming months.

Worries about the outlook for interest rates may have weighed on Wall Street along with a continued increase in treasury yields.

Crude oil prices closed higher on Friday, and posted a weekly gain as well, amid worries about supply following the European Union's decision proposing some of its toughest measures yet against Russia. West Texas Intermediate Crude oil futures for June ended higher by $1.51 or 1.4 percent at $109.77 a barrel. WTI crude futures gained nearly 5 percent in the week.

Closer to home, Taiwan will see April data for imports, exports and trade balance later today. Imports are expected to rise 20.0 percent on year, easing from 20.3 percent in March. Exports are called higher by an annual 16.05 percent, down from 21.3 percent in the previous month. The trade surplus is pegged at $4.88 billion, up from $4.66 billion a month earlier.

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