Business

Taiwan’s stock market could suffer further damage on Thursday

ProDentim


(RTTNews) – The Taiwan stock market ended a modest two-day winning streak on Wednesday in which it gained more than 55 points or 0.4%. The Taiwan Stock Exchange is now just below the plateau of 14,175 points and the losses could accelerate on Thursday.

The global forecast for Asian markets is weak due to concerns about the health of the global economy and the outlook for interest rates. European markets were mixed and US stocks were down and Asian markets should follow the latter lead.

The TSE ended sharply lower on Wednesday following losses in financial stocks, technology stocks and plastics companies.

For the day, the index fell 155.33 points or 1.08% to end at 14,173.10 after trading between 14,119.30 and 14,249.83.

Among assets, Cathay Financial was down 1.22%, while Mega Financial was down 0.49%, CTBC Financial was down 0.45%, Fubon Financial was down 0.70%, First Financial was down 0.94%, E Sun Financial slipped 1.03%, Taiwan Semiconductor Manufacturing Company fell 1.31%, United Microelectronics Corporation fell 2.51%, Largan Precision fell 2.54%, MediaTek plunged 2.74%, Delta Electronics lost 0.53%, Novatek Microelectronics fell 3.13%, Formosa Plastics fell 0.34%, Nan Ya Plastics slipped 0.42%, Asia Cement fell 0.96% and Taiwan Cement, Hon Hai Precision and Catcher Technology remained unchanged.

Wall Street’s lead is negative as the major averages cleared from a slightly higher open on Wednesday, heading rapidly south and ending firmly in the red.

The Dow Jones fell 365.85 points or 1.10% to end at 32,875.71, while the NASDAQ fell 139.94 points or 1.35% to close at 10,213.29 and the S&P 500 fell 46.03 points or 1.20% to end at 3,783.22.

The weakness that emerged on Wall Street partly reflected lingering concerns about the economic outlook and the possibility that higher interest rates could lead to a recession.

However, with many traders away from their desks over the holidays, selling on Wall Street may have been exaggerated by below-average volume.

In economic news, the National Association of Realtors reported a continued fall in U.S. pending home sales in November.

Crude oil prices fell on Wednesday on worries about the outlook for energy demand amid fears of a global recession and rising COVID-19 cases in China. West Texas Intermediate crude oil futures for February ended down $0.57 or 0.7% at $78.86 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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