Taiwan Stock Market May Extend Losing Streak

(RTTNews) - The Taiwan stock market has moved lower in back-to-back sessions, shedding more than 200 points or 0.9 percent along the way. The Taiwan Stock Exchange now rests just above the 23,330-point plateau and it may take further damage again on Thursday.

The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The TSE finished modestly lower again on Wednesday following losses from the financial shares, technology stocks and plastics companies.

For the day, the index stumbled 200.67 points or 0.85 percent to finish at 23,334.76 after trading between 23,318.84 and 23,486.45.

Among the actives, Cathay Financial dipped 0.14 percent, while Mega Financial and First Financial both shed 1.27 percent, CTBC Financial lost 1.23 percent, Fubon Financial surrendered 1.29 percent, E Sun Financial weakened 1.06 percent, Taiwan Semiconductor Manufacturing Company slumped 1.40 percent, United Microelectronics Corporation dropped 0.99 percent, Hon Hai Precision rose 0.23 percent, Largan Precision perked 0.21 percent, Catcher Technology tanked 2,39 percent, MediaTek sank 0.76 percent, Delta Electronics declined 1.48 percent, Novatek Microelectronics retreated 1.33 percent, Formosa Plastics skidded 1.07 percent, Nan Ya Plastics was down 0.97 percent and Asia Cement tumbled 1.38 percent.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.

The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the S&P 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.

The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.

The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.

While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.

Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.

Closer to home, Taiwan will release September unemployment numbers later today; in August, the jobless rate was 3.36 percent.