(RTTNews) - The Taiwan stock market has finished lower in two straight sessions, sinking almost 650 points or 4 percent along the way. The Taiwan Stock Exchange now sits just beneath the 16,050-point plateau and it may take further damage on Tuesday.
The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.
The TSE finished sharply lower on Monday following losses from the financials, technology stocks and cement companies.
For the day, the index plunged 359.28 points or 2.19 percent to finish at the daily low of 16,048.92 after peaking at 16,345.84.
Among the actives, Cathay Financial cratered 4.08 percent, while Mega Financial tanked 3.43 percent, CTBC Financial sank 2.50 percent, Fubon Financial plummeted 4.91 percent, First Financial skidded 2.79 percent, E Sun Financial lost 3.46 percent, Taiwan Semiconductor Manufacturing Company stumbled 1.52 percent, United Microelectronics Corporation declined 1.34 percent, Largan Precision retreated 2.19 percent, Catcher Technology shed 0.66 percent, MediaTek tumbled 2.52 percent, Delta Electronics surrendered 1.71 percent, Novatek Microelectronics plunged 3.32 percent, Formosa Plastic was down 1.90 percent, Asia Cement fell 1.91 percent, Taiwan Cement slid 1.88 percent and Hon Hai Precision was unchanged.
The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.
The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.
Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.
The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
