Markets

Renewed Selling Pressure Predicted For Taiwan Bourse

(RTTNews) - The Taiwan stock market bounced higher again on Monday, one session after ending the two-day winning streak in which it had gathered more than 50 points or 0.4 percent. The Taiwan Stock Exchange now rests just beneath the 12,910-point plateau although it figures to head south again on Tuesday.

The global forecast for the Asian markets is broadly negative thanks to a renewed surge in coronavirus cases and lockdown measures around the globe. The European and U.S. markets were sharply lower and the Asian markets are tipped to open in similar fashion.

The TSE finished slightly higher on Monday following gains from the financials and mixed performances from the technology and cement stocks.

For the day, the index rose 10.21 points or 0.08 percent to finish at 12,909.03 after trading between 12,894.18 and 12,971.58.

Among the actives, Cathay Financial advanced 0.91 percent, while Mega Financial rose 0.18 percent, CTBC Financial collected 0.55 percent, Fubon Financial jumped 0.72 percent, First Financial was up 0.49 percent, E Sun Financial climbed 0.81 percent, Taiwan Semiconductor Manufacturing Company shed 0.44 percent, United Microelectronics Corporation added 0.76 percent, Hon Hai Precision lost 0.62 percent, Largan Precision increased 0.47 percent, Catcher Technology tanked 2.41 percent, MediaTek fell 0.59 percent, Formosa Plastic gained 0.50 percent, Asia Cement perked 0.36 percent and Taiwan Cement lost 0.37 percent.

The lead from Wall Street is bleak as stocks opened firmly lower on Monday and saw the losses accelerate as the day progressed - extending last week's losses.

The Dow plummeted 649.93 points or 2.29 percent to finish at 27,685.64, while the NASDAQ dropped 189.34 points or 1.64 percent to end at 11,358.94 and the S&P 500 sank 64.42 points or 1.86 percent to close at 3,400.97.

The sell-off on Wall Street comes amid concerns about a record resurgence in coronavirus cases, while White House officials say the pandemic can't be controlled and the administration would instead focus on vaccines and therapeutics.

The spike in new coronavirus cases comes as lawmakers in Washington remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.

Adding to the negative sentiment, the Commerce Department reported an unexpected slump in new home sales last month.

Crude oil prices moved lower in response to the bad news, with West Texas Intermediate sinking $1.17 or 2.94 percent to $38.55.

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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