The Taiwan stock market has closed lower now in two straight trading days, shedding more than 120 points or 1.7 percent along the way. The Taiwan Stock Exchange finished just above the 6,950-point plateau, and now investors are looking for a positive bounce when the market opens on Tuesday.
The global forecast for the Asian markets is generally upbeat, following the European bourses in a technical rebound after heavy selling pressure last week. Industrials and technology stocks are tipped to lead the markets higher on optimism that 2012 will bring an end to Europe's sovereign debt crisis, although financials and steel producers could remain soft on Tuesday.
The TSE finished sharply lower on Monday following losses from the finance, technology, construction, food, textile and cement sectors.
For the day, the index plummeted 119.87 points or 1.69 percent to finish at 6,952.21 after trading between 6,948.67 and 7,073.48 on turnover of 48.86 billion Taiwan dollars. There were 2,746 decliners and 846 gainers, with 270 stocks finishing unchanged.
Among the decliners, Cathay Financial Holding, Fubon Financial Holding, Mega Financial Holdings, First Financial Holding, Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry all finished with heavy losses.
Wall Street was closed on Monday, but the European markets kicked off the New Year in style on Monday.
In economic news, German factory sector contracted less than initially estimated in December, the detailed survey results from Markit Economics showed Monday. The purchasing managers' index posted 48.4 in December, up slightly from the flash figure of 48.1 and also above November's 47.9. However, a PMI reading below 50 indicates contraction of the sector.
Also, the downturn in the Eurozone manufacturing sector extended into a fifth successive month in December as initially estimated, Markit Economics said on Monday. The Purchasing Managers' Index came in at 46.9 in December, unchanged from the flash estimate, but rising marginally from November's 28-month low of 46.4 to signal a slight easing in the overall rate of contraction.
Separately, data from the China Federation of Logistics and Purchasing showed China's Purchasing Managers Index, a gauge of the country's manufacturing activity, rose more than estimated to 50.3 percent in December from 49 in November, alleviating fears of a slowdown in the world's second largest economy.
In corporate news, Veolia Environnement jumped 5.5 percent, leading utility stocks sharply higher, after the Sunday Times reported that Allianz SE and Canada's Borealis pension were interested in bidding for its U.K. water business.
Sunways AG Saturday said it is increasing the company's share capital to 17,378,613 euros from 11,588,613 euros and only LDK Solar Germany Holding GmbH, an indirect subsidiary of China's LDK Solar Co. Ltd., has been entitled to subscribe for the new shares.
LDK Solar Germany Holding intends to make cash voluntary public takeover offer of 1.90 euros per share for all outstanding shares in the company in late January 2012. Sunways shares soared 21 percent.
Germany's DAX rose 2.89 percent and the CAC of France added 1.98 percent. Markets in Switzerland and the U.K. remained closed, as did the major U.S. exchanges. The Euro Stoxx 50 benchmark index rose 2.1 percent, paring last year's brutal losses. The Stoxx Europe 50 index, including some major U.K. companies, rose 0.75 percent.
On the economic front, Taiwan's manufacturing activity declined in December, but at a much slower pace compared to the previous month, the latest survey from Markit Economics said on Monday. The HSBC manufacturing purchasing managers' index posted 47.1 in December, up from 43.9 in November. A PMI reading below 50 indicates contraction of the sector. New business received by companies in Taiwan fell for the seventh month running in December, although the rate of contraction eased to the weakest since June. New work intakes from export markets also decreased.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.