Oversold Taiwan Bourse May Face Another Soft Open On Monday

(RTTNews) - The Taiwan stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had picked up more than 100 points or 0.4 percent. The Taiwan Stock Exchange now sits just beneath the 21,640-point plateau and it's got a weak lead again for Monday's trade.

The global forecast for the Asian markets is brutal on concerns of an economic slowdown in the United States. The European and U.S. markets were sharply lower and the Asian bourses are expected to open in similar fashion.

The TSE finished sharply lower on Monday with damage in all sectors, especially the financial shares and technology stocks.

For the day, the index plummeted 1,004.01 points or 4.43 percent to finish at 21,638/09 after trading between 21,636.22 and 22,141.20.

Among the actives, Cathay Financial slumped 2.39 percent, while Mega Financial shed 1.62 percent, CTBC Financial tumbled 2.37 percent, First Financial lost 1.19 percent, Fubon Financial weakened 1.47 percent, E Sun Financial fell 0.75 percent, Taiwan Semiconductor Manufacturing Company surrendered 5.94 percent, United Microelectronics Corporation dropped 1.86 percent, Hon Hai Precision plummeted 7.90 percent, Largan Precision retreated 3.48 percent, Catcher Technology rose 0.23 percent, MediaTek plunged 7.63 percent, Delta Electronics tanked 8.02 percent, Novatek Microelectronics sank 2.80 percent, Formosa Plastics was down 2.05 percent, Nan Ya Plastics stumbled 2.71 percent and Asia Cement added 0.61 percent.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained well under water throughout the trading day.

The Dow plummeted 610.74 points or 1.51 percent to finish at 39,737.26, while the NASDAQ tumbled 417.94 points or 2.43 percent to close at 16,776.16 and the S&P dropped 100.12 points or 1.84 percent to end at 5,346.56. For the week, the NASDAQ plummeted 3.4 percent, and the S&P 500 and the Dow both shed 2.1 percent.

Concerns about the outlook for the U.S. economy continued to weigh on Wall Street following the release of a closely watched Labor Department report showing employment increased by much less than expected in the month of July.

While weaker than expected economic data has been a positive for the markets amid expectations it would convince the Federal Reserve to lower interest rates, traders are concerned the Fed has waited too long and could spur a U.S. recession.

Negative sentiment was also generated in reaction to the latest earnings news, with companies like Intel (INTC) and online retail giant Amazon (AMZN) leading the way lower.

Crude oil prices fell sharply to a two-month low on Friday, sliding for a second successive session on rising concerns about the outlook for demand due to slowing growth in the U.S. West Texas Intermediate Crude oil futures for September fell $2.79 or 3.66 percent at $73.52 a barrel.