More Pain Predicted For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has finished lower in four straight sessions, sinking more than 760 points or 6.4 percent along the way. The Taiwan Stock Exchange now rests just beneath the 13,780-point plateau and it's tipped to open under pressure again on Tuesday.

The global forecast for the Asian markets continues to be soft on concerns about interest rates and the global economy. The European and U.S. markets were down again and the Asian markets, despite being badly oversold at this point, are expected to at least open in the red.

The TSE finished sharply lower on Monday following losses from the financial shares, technology stocks, cement companies and plastic stocks.

For the day, the index tumbled 340.19 points or 2.41 percent to finish at 13,778.19 after trading between 13,743.19 and 13,993.42.

Among the actives, Cathay Financial lost 1.43 percent, while Mega Financial slid 1.62 percent, CTBC Financial weakened 1.85 percent, Fubon Financial slumped 1.67 percent, E Sun Financial and First Financial both shed 1.50 percent, Taiwan Semiconductor Manufacturing Company dropped 1.87 percent, United Microelectronics Corporation tumbled 3.79 percent, Hon Hai Precision declined 2.35 percent, Largan Precision retreated 2.12 percent, Catcher Technology fell 0.87 percent, MediaTek sank 1.90 percent, Delta Electronics stumbled 2.25 percent, Formosa Plastics slid 0.69 percent, Nan Ya Plastics was down 1.34 percent, Asia Cement plunged 3.31 percent and Taiwan Cement plummeted 3.11 percent.

The lead from Wall Street continues to be negative as the major averages were unable to hold early support on Monday, accelerating to the downside as the day progressed.

The Dow tumbled 329.60 points or 1.11 percent to finish at 29.260.81, while the NASDAQ dropped 65.00 points or 0.60 percent to close at 10.802.92 and the S&P 500 fell 38.19 points or 1.03 percent to end at 3,655.04.

A continued surge in the value of the U.S. dollar contributed to the weakness on Wall Street, with the greenback hitting a record high versus the British pound.

Concerns about the outlook for the global economy also continued to weigh on the markets amid worries the increases in interest rates around the world will lead to a recession. The Fed and other central banks have indicated they plan to continue raising rates in an effort to combat stubbornly elevated inflation.

The extended weakness on Wall Street also came amid a spike in treasury yields, with the yield on the benchmark 10-year note soaring to a 12-year high.

Crude oil prices tumbled to near nine-month lows on Monday, extending losses from the previous session amid rising concerns about the outlook for fuel demand due to increasing possibility of a global recession. West Texas Intermediate Crude oil futures for November ended lower by $2.03 or 2.6 percent at $76.71 a barrel.