The Taiwan stock market has ended lower now in six consecutive trading days, falling nearly 340 points or 4.0 percent along the way. The Taiwan Stock Exchange finished just above the 8,480-point plateau, and now analysts are predicting further damage when the market kicks off trade on Friday.
The global forecast for the Asian markets suggests consolidation on renewed concerns over the economy and the debt limit in the United States. Technology stocks are expected to see continued pressure, along with steel companies and airlines. The European and U.S. markets finished firmly in the red, and the Asian markets are expected to follow that lead.
The TSE finished barely lower on Thursday as softness from the technology and financial stocks was offset by gains from the cement, textile and plastic sectors.
For the day, the index shed 6.71 points or 0.07 percent to finish at 8,481.35 after trading between 8,410.44 and 8,531.96 on turnover of 120.05 billion Taiwan dollars.
Among the actives, AsusTek shed 1.66 percent, while Acer lost 1.20 percent, Hon Hai Precision fell 1.53 percent and MediaTek jumped 4.45 percent.
The lead from Wall Street is fairly negative as stocks moved mostly lower on Thursday after failing to sustain an early upward move. The downturn came amid uncertainty about raising the debt limit as well as a fresh round of testimony from Federal Reserve Chairman Ben Bernanke.
While comments from Bernanke contributed to the markets' strength on Wednesday, the Fed Chief sought to clarify his remarks in testimony before Senate Banking Committee. Bernanke reiterated that the Fed is willing to deploy additional stimulus if conditions warrant, but he suggested that the central bank is not likely to take action in any time in the near future.
"The situation is more complex," Bernanke said. "Inflation is higher...We are uncertain about the near-term developments in the economy...We are not prepared at this point to take further action."
Traders also continued to express uncertainty about whether Democrats and Republicans can reach an agreement on raising the debt limit in order to avoid a default by the U.S. government. Amid the concerns about the debt limit debate, Moody's has placed its "AAA" debt rating on the U.S. under review for a possible downgrade.
The early strength came as traders reacted positively to a slew of economic data released before the start of trading, including reports showing an unexpected uptick in retail sales and a drop in weekly jobless claims to a nearly three-month low.
On the corporate news front, J.P. Morgan (JPM) rose by 1.8 percent after reporting second quarter earnings of $1.27 per share, higher than $1.09 per share in the year-ago quarter. Net revenues rose 7 percent to $26.78 billion. Analysts estimated earnings of $1.21 per share on revenues of $25.13 billion.
The major averages remained stuck firmly in negative territory going into the close of trading. The Dow fell 54.49 points or 0.4 percent to 12,437.12, the NASDAQ dropped 34.25 points or 1.2 percent to 2,762.67 and the S&P 500 slid 8.85 points or 0.7 percent to 1,308.87.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.