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Tech Shares Likely To Drag Taiwan Stock Market

The Taiwan stock market has moved lower in two straight sessions, sliding more than 90 points or 0.9 percent along the way. The Taiwan Stock Exchange now rests just beneath the 10,525-point plateau and it's expected to extend its losses on Monday.

The global forecast for the Asian markets is slightly negative, although technology stocks are likely to weigh. The European and U.S. market were down and the Asian bourses are predicted to follow suit.

The TSE finished modestly lower on Friday following mixed performances from the financial shares and the technology stocks.

For the day, the index shed 36.33 points or 0.34 percent to finish at 10,524.67 after trading between 10,517.82 and 10,568.92.

Among the actives, Cathay Financial dropped 0.84 percent, while Mega Financial added 0.16 percent, CTBC Financial perked 1.43 percent, Fubon Financial fell 0.23 percent, First Financial collected 0.23 percent, Taishin Financial rose 0.71 percent, Taiwan Semiconductor Manufacturing Company tumbled 1.67 percent, United Microelectronics Corporation shed 0.36 percent, Hon Hai Precision jumped 1.21 percent, Largan Precision skidded 1.36 percent, AsusTek Computer lost 0.69 percent, Catcher Technology spiked 1.87 percent and MediaTek sank 0.81 percent.

The lead from Wall Street is soft as stocks opened lower on Friday, staged a mild recovery in afternoon trade but still finished in the red.

The Dow shed 17.19 points or 0.07 percent, while the NASDAQ lost 40.47 points or 0.562 percent to 7,796.66 and the S&P fell 4.66 points or 0.16 percent to 2,886.98. For the week, the Dow added 0.4 percent, the NASDAQ rose 0.7 percent and the S&P advanced 0.5 percent.

Tech stocks came under pressure after Broadcom (AVGO) reported better than expected fiscal second quarter earnings but lowered its full-year revenue guidance due to ongoing geopolitical uncertainties.

In economic news, the Commerce noted a solid gain in retail sales in May and a strong upward revision in April. Also, the Federal Reserve noted a bigger than expected increase in industrial production in May, although the University of Michigan said its reading on consumer sentiment dropped in June.

Crude oil prices moved up Friday amid rising geopolitical tensions following the recent attacks on two oil tankers in the Gulf of Oman. West Texas Intermediate crude oil futures for July ended up $0.23 or 0.4 percent at $52.51 a barrel. For the week, WTA crude oil futures shed 2.7 percent.

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