Taiwan Stock Market May Extend Friday's Losses

(RTTNews) - The Taiwan stock market has alternated between positive and negative finishes through the last four trading days since the end of the four-day losing streak in which it had tumbled more than 760 points or 6.4 percent. The Taiwan Stock Exchange now rests just above the 13,420-point plateau and the losses may accelerate on Monday.

The global forecast for the Asian markets is mixed to lower on recession fears and the outlook for interest rates. The European markets were up and the U.S. bourses were down and the oversold Asian bourses figure to split the difference.

The TSE finished modestly lower on Friday following losses from the cement and financial companies, while the technology stocks were mixed and the plastics offered support.

For the day, the index dropped 109.72 points or 0.81 percent to finish at 13,424.58 after trading between 13,274.72 and 13,466.82.

Among the actives, Cathay Financial shed 0.50 percent, while Mega Financial declined 2.04 percent, CTBC Financial dropped 1.00 percent, Fubon Financial sank 0.80 percent, First Financial skidded 1.33 percent, E Sun Financial slumped 1.34 percent, Taiwan Semiconductor Manufacturing Company plunged 2.99 percent, United Microelectronics Corporation tumbled 2.19 percent, Hon Hai Precision added 0.49 percent, Largan Precision surrendered 2.05 percent, Catcher Technology advanced 0.88 percent, MediaTek strengthened 1.47 percent, Delta Electronics perked 0.20 percent, Formosa Plastics climbed 1.05 percent, Nan Ya Plastics jumped 1.83 percent, Asia Cement retreated 1.62 percent and Taiwan Cement weakened 1.02 percent.

The lead from Wall Street is negative as the major averages hugged the line through the first half of Friday's trade but headed firmly south in the afternoon, closing near daily lows.

The Dow plummeted 500.09 points or 1.71 percent to finish at 28,725.51, while the NASDAQ tumbled 161.88 points or 1.51 percent to close at 10.575.62 and the S&P 500 dropped 54.85 points or 1.51 percent to end at 3,585.62.

For the week, the NASDAQ dove 2.7 percent, while the Dow and the S&P 500 both plunged 2.9 percent. The major averages also posted steep losses for the month and the quarter.

The extended sell-off on Wall Street reflected lingering concerns about the global economic outlook amid aggressive interest rate hikes by central banks around the world.

Adding to the negative sentiment, a reading on inflation said to be preferred by the Federal Reserve showed an acceleration in the pace of core consumer price growth in August. The faster rate of price growth may lead the Fed to maintain is aggressive stance regarding future rate hikes.

Crude oil futures failed to hold early gains and settled lower on Friday as worries about the outlook for energy demand weighed on prices. West Texas Intermediate Crude oil futures for November ended lower by $1.74 or 2.1 percent at $79.49 a barrel.