More Pain Predicted For Taiwan Stock Market

(RTTNews) - The Taiwan stock market has finished lower in two straight sessions, plunging more than 500 points or 3.7 percent along the way. The Taiwan Stock Exchange now rests just above the 13,950-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets suggests consolidation on renewed fears for the economy in the face of a Caovid-19 resurgence. 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 sharply lower on Tuesday following losses from the financials, cement stocks and technology companies.

For the day, the index plummeted 389.91 points or 2.72 percent to finish at 13,950.62 after trading between 13,928.66 and 14,235.63.

Among the actives, Cathay Financial retreated 2.77 percent, while Mega Financial tumbled 2.48 percent, CTBC Financial surrendered 2.96 percent, Fubon Financial plummeted 4.12 percent, First Financial slumped 3.16 percent, E Sun Financial weakened 2.03 percent, Taiwan Semiconductor Manufacturing Company dropped 2.71 percent, United Microelectronics Corporation plunged 4.79 percent, Hon Hai Precision dipped 0.50 percent, Largan Precision declined 2.39 percent, MediaTek tanked 3.61 percent, Delta Electronics gained 0.65 percent, Formosa Plastics added 0.59 percent, Nan Ya Plastics crashed 4.72 percent, Asia Cement fell 0.79 percent, Taiwan Cement eased 0.24 percent and Catcher Technology and Far Eastern New Century were unchanged.

The lead from Wall Street is negative as the major averages opened higher on Tuesday, but a late slide pushed them into the red at the close.

The Dow dropped 192.51 points or 0.62 percent to finish at 30,981.51, while the NASDAQ sank 107.87 points or 0.95 percent to end at 11,264.73 and the S&P 500 lost 35.63 points or 0.92 percent to close at 3,818.80.

The late-day weakness on Wall Street came as traders looked ahead to the Labor Department's report on consumer price inflation for June.

Concerns about the emergence of a new, more infectious Covid-19 strain in several parts of the world also continued to weigh.

Investors also seemed to be moving money out of stocks ahead of what some expect to be a difficult quarterly earnings season.

The price of crude oil plummeted on Tuesday on concerns about the outlook for global demand due to recession fears and a renewed spike in Covid-19 cases. West Texas Intermediate for August delivery shed $8.25 or 7.9 percent to $95.84 a barrel, closing below $100 a barrel for the first time in two months.