(RTTNews) – The Taiwan stock market ended Friday’s two-day winning streak in which it had climbed nearly 200 points or 1.3%. The Taiwan Stock Exchange is now just below the plateau of 16,410 points and could suffer further damage on Monday.
The global outlook for Asian markets is weak given concerns over the global economy and interest rate outlook, with technology stocks particularly likely to fall. European and American markets were down and Asian exchanges are expected to open similarly.
The TSE ended sharply lower on Friday with damage across the board, especially among financials, cement companies and technology stocks.
For the day, the index plunged 287.90 points or 1.72% to end at 16,408.20 after trading between 16,312.17 and 16,491.11.
Among assets, Cathay Financial fell 1.77%, while Mega Financial fell 1.25%, CTBC Financial fell 0.18%, Fubon Financial fell 4.30%, First Financial fell 0.92%, E Sun Financial fell 0.93%, Taiwan Semiconductor Manufacturing Company fell 2.58%, United Microelectronics Corporation slipped 1.12%, Hon Hai Precision lost 0.48%, Largan Precision fell 2.74%, MediaTek fell 0.83%, Delta Electronics plunged 2.90%, Novatek Microelectronics fell 2.49%, Formosa Plastic fell 0.47%, Nan Ya Plastics fell 0.57%. , Asia Cement fell 0.53%, Taiwan Cement fell 1.10% and Catcher Technology was unchanged.
Wall Street’s lead ends up being negative as the major averages spent most of Friday bouncing off the unchanged line before finally settling into the red.
The Dow Jones lost 98.63 points or 0.30% to end at 32,899.37, while the NASDAQ fell 173.04 points or 1.40% to end at 12,144.66 and the S&P 500 fell 23.53 points or 0.57% to close at 4,123.34. For the week, the NASDAQ fell 1.5% and the Dow Jones and S&P both fell 0.2%.
The lower close on Wall Street followed the closely watched Labor Department report showing stronger-than-expected job growth in April.
With the report showing continued strength in the labor market, economists predicted that the Federal Reserve will now continue its plans for a sharp hike in interest rates over the next few months.
Worries about the outlook for interest rates may have weighed on Wall Street, along with a continued rise in Treasury yields.
Crude oil prices closed higher on Friday and also posted a weekly gain, amid supply concerns following the European Union’s decision to offer some of its toughest measures yet against the Russia. West Texas Intermediate crude oil futures for June ended up $1.51 or 1.4% at $109.77 a barrel. WTI crude futures gained almost 5% during the week.
Closer to home, Taiwan will see April data for imports, exports and trade balance later today. Imports are expected to increase by 20.0% year on year, against 20.3% in March. Exports are called higher by 16.05% annually, compared to 21.3% the previous month. The trade surplus is pegged at $4.88 billion, down from $4.66 billion a month earlier.
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