(RTTNews) – The Taiwan stock market has finished lower in consecutive trading days, slumping more than 210 points or 1.3 percent along the way. The Taiwan Stock Exchange now rests just above the 16,460-point plateau and it’s expected to extend its losses on Monday.
The global forecast for the Asian markets is sharply negative on growing interest rate and inflation concerns. The European and US markets took heavy damage and the Asian bourses are tipped to open in similar fashion.
The TSE finished modestly lower on Friday following losses from the plastic and cement stocks, while the financials and technology shares were mixed.
For the day, the index dropped 161.18 points or 0.97 percent to finish at 16,460.12 after trading between 16,403.33 and 16,581.81.
Among the actives, Mega Financial eased 0.13 percent, while CTBC Financial collected 0.58 percent, Fubon Financial dropped 0.79 percent, First Financial sank 0.76 percent, Taiwan Semiconductor Manufacturing Company tanked 2.03 percent, United Microelectronics Corporation skidded 1.16 percent, Hon Hai Precision retreated 1.30 percent , Largan Precision declined 1.36 percent, Catcher Technology plunged 2.89 percent, MediaTek added 0.65 percent, Delta Electronics advanced 0.85 percent Formosa Plastics and Uni-President both lost 0.46 percent, Nan Ya Plastics eased 0.12 percent, Asia Cement slumped 1.12 percent, Taiwan Cement fell 0.36 percent and Cathay Financial and E Sun Financial were unchanged.
The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained that way throughout the session, ending with heavy losses.
The Dow plummeted 880.00 points or 2.73 percent to finish at 31,392.79, while the NASDAQ plunged 414.20 points or 3.52 percent to close at 11,340.02 and the S&P 500 tumbled 116.96 points or 2.91 percent to end at 3,900.86.
For the week, the Dow plunged 4.6 percent, the NASDAQ tanked 5.6 percent and the S&P 500 sank 5.1 percent.
The sell-off on Wall Street came after the Labor Department released a report showing consumer prices in the US shot up by more than expected in the month of May, raising concerns about the outlook for interest rates.
The inflation spike is likely to convince the Federal Reserve to follow through on its plans to aggressively raise interest rates in an effort to combat inflation. The Fed will announce its latest monetary policy decision on Wednesday, with the central bank widely expected to raise interest rates by another 50 basis points.
Crude oil prices fell on Friday as the dollar surged higher after data showing a steep acceleration in US inflation fears of more aggressive rate hikes by the Federal Reserve. West Texas Intermediate Crude oil futures for July ended lower by $0.84 or 0.7 percent at $120.67 a barrel.
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