Taiwan Stock Market Poised To Extend Losing Streak


(RTTNews) – The Taiwan stock market has finished lower in back-to-back trading days, slipping almost 60 points or 0.4 percent along the way. The Taiwan Stock Exchange now rests just above the 13,715-point plateau and it may take further damage again on Monday.

The global forecast for the Asian markets is uninspired thanks to a continued surge in Covid-19 cases worldwide. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The TSE finished barely lower on Friday following losses from the financial shares and a mixed picture from the technology stocks.

For the day, the index eased 5.96 points or 0.04 percent to finish at 13,716.44 after trading between 13,666.07 and 13,726.22.

Among the actives, Cathay Financial shed 0.48 percent, while Mega Financial eased 0.17 percent, CTBC Financial fell 0.26 percent, Fubon Financial sank 0.77 percent, First Financial was down 0.46 percent, E Sun Financial dropped 1.17 percent, Taiwan Semiconductor Manufacturing Company shed 0.41 percent, United Microelectronics Corporation rallied 2.96 percent, Hon Hai Precision lost 0.48 percent, Largan Precision tanked 2.40 percent, Catcher Technology added 0.52 percent, MediaTek jumped 1.91 percent, Formosa Plastic rose 0.23 percent, Asia Cement slid 0.34 percent and Taiwan Cement dipped 0.47 percent.

The lead from Wall Street is soft as stocks opened lower on Friday and largely remained in the red, finishing firmly in negative territory.

The Dow shed 219.75 points or 0.75 percent to finish at 29,263.48, while the NASDAQ sank 49.74 points or 0.42 percent to end at 11,854.976 and the S&P 500 fell 24.33 points or 0.68 percent to close at 3,557.54. For the week, the Dow fell 0.7 percent, the NASDAQ rose 0.2 percent and the S&P fell 0.8 percent.

The weakness on Wall Street reflected concerns about the near-term economic outlook amid a continued spike in new coronavirus cases in the U.S. Data showed nearly 188,000 new coronavirus cases on Thursday, while the daily death toll topped 2,000 for the first time.

The continued surge in new cases, hospitalizations and deaths in the U.S. has raised concerns new restrictions and lockdowns will dampen the economy recovery. While there continues to be upbeat news on the vaccine front, traders seem worried about an economic downturn leading up to the widespread distribution of a vaccine.

Adding to the economic uncertainty, Treasury Secretary Steven Mnuchin announced a decision to allow five of the Federal Reserve’s nine emergency lending programs to expire at the end of the year.

Crude oil prices moved higher on Friday, lifted by optimism about a likely pick-up in energy demand once the Covid-19 vaccines get the nod from drug regulators. West Texas Intermediate Crude oil futures for December settled at $42.15 a barrel, gaining $0.41 or 1 percent on the expiration day. New front-month contract January WTI futures were up by $0.52 or 1.2 percent at $42.42 a barrel.

Closer to home, Taiwan will release October figures for retail sales, industrial production, unemployment and consumer confidence later today. In September, retail sales were up 2.88 percent on year, while industrial production climbed 10.73 percent on year and the jobless rate was 3.78 percent. The consumer confidence index score was 71.60.

A Global Asset Management Seoul Korea Magazine

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