Lower Open Called For Taiwan Stock Market

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(RTTNews.com) - The Taiwan stock market on Tuesday finally ended the seven-day winning streak in which it had soared almost 450 points or 4 percent. The Taiwan Stock Exchange now rests just above the 10,870-point plateau and it's looking at another soft start on Wednesday.

The global forecast for the Asian markets is slightly soft, with concerns over U.S. treasury yields tempered by support from crude oil. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The TSE finished modestly lower on Tuesday following losses from the finance, technology and steel stocks.

For the day, the index skidded 77.66 points or 0.71 percent to finish at the daily low of 10,874.73 after peaking at 10,978.38 on turnover of 152.82 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Corporation dropped 1.07 percent, while Catcher Technology plunged 2.39 percent, Hon Hai Precision tumbled 3.37 percent, Innolux lost 0.43 percent, Largan Precision skidded 2.73 percent, Cathay Financial retreated 1.82 percent, Mega Financial fell 0.75 percent, Fubon Financial shed 1.16 percent, China Steel slid 0.64 percent and Taiwan Steel Union plummeted 2.54 percent.

The lead from Wall Street is negative as stocks moved lower on Tuesday, as profit taking erased gains from previous sessions.

The Dow slumped 193.00 points or 0.78 percent to 24,706.41, the NASDAQ fell 59.69 points or 0.81 percent to 7,351.63 and the S&P 500 slid 18.68 points or 0.68 percent to 2,711.45.

The weakness came when traders reacted to a jump in U.S. treasury yields, with the yield on the benchmark ten-year note surging up to its highest levels since 2011.

In economic news, the Commerce Department said retail sales increased in line with estimates in April. Also, the National Association of Home Builders noted an unexpected improvement in homebuilder confidence in May.

Crude oil futures rose Tuesday, even as U.S. stocks and other commodities melted down. Oil has surged to four-year highs amid speculation that OPEC will continue to cut production. West Texas Intermediate oil for June ended up 35 cents or 0.5 percent to finish at $71.31/bbl.

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This article appears in: Politics , World Markets , US Markets , Stocks

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