Oversold Taiwan Shares Called Lower Again On Thursday

The Taiwan stock market has finished lower in three straight sessions, plunging almost 1,400 points or 8.3 percent along the way. The Taiwan Stock Exchange now sits just above the 15,900-point plateau and it’s expected to open under pressure again on Thursday.

The global forecast for the Asian markets suggests consolidation on rising inflation and concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were sharply lower and the Asian markets are tipped to open in the red.

The TSE finished with huge losses on Wednesday with damage across the board – especially from the financial shares and technology stocks.

For the day, the index plummeted 680.76 points or 4.11 percent to finish at 15,902.37 after trading between 15,165.27 and 16,552.63.

Among the actives, Cathay Financial plummeted 7.60 percent, while Mega Financial tumbled 3.39 percent, CTBC Financial sank 5.50 percent, Fubon Financial cratered 6.42 percent, First Financial skidded 4.02 percent, E Sun Financial dropped 3.24 percent, Taiwan Semiconductor Manufacturing Company retreated 1.93 percent, United Microelectronics Corporation plunged 5.41 percent, Hon Hai Precision tanked 4.67 percent, Largan Precision added 0.72 percent, Catcher Technology declined 4.57 percent, MediaTek surrendered 2.52 percent, Formosa Plastic plummeted 6.63 percent, Asia Cement lost 3.09 percent and Taiwan Cement fell 3.88 percent.

The lead from Wall Street is broadly negative as stocks opened in the red on Wednesday and the losses only accelerated as the day progressed.

The Dow plunged 681.50 points or 1.99 percent to finish at 33,587.66, while the NASDAQ tumbled 357.75 points or 2.67 percent to end at 13,031.68 and the S&P 500 sank 89.06 points or 2.14 percent to close at 4,063.04.

The sell-off on Wall Street came amid concerns about the accelerating pace of inflation after the Labor Department said consumer prices rose much more than expected in April.

The significantly faster price growth raised concerns about the outlook for monetary policy even though the Federal Reserve has repeatedly downplayed the risks of inflation.

Crude oil prices moved higher on Wednesday on optimism about the outlook for energy demand and data showing a drop in crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up by $0.80 or 1.2 percent at $66.08 a barrel.