The Taiwan stock market experienced declines over three consecutive sessions, losing nearly 650 points, translating to a 2.7% drop. Currently, the Taiwan Stock Exchange is positioned slightly above the 23,010-point mark, with expectations of another subdued opening on Monday.
Globally, the outlook for Asian markets is notably negative. This sentiment arises as robust U.S. employment data has heightened concerns over potential interest rate hikes. Both European and U.S. markets concluded with significant losses, suggesting that Asian markets could follow suit.
On Friday, the TSE saw moderate declines, primarily influenced by downturns in financial and cement sectors, while the technology sector showed gains and financial stocks displayed mixed results. The index slipped by 69.24 points, or 0.30%, closing at 23,011.86, after fluctuating between 22,989.67 and 23,202.25 throughout the day.
In terms of individual performances: Mega Financial decreased by 0.39%, CTBC Financial saw a slight rise of 0.16%, First Financial dropped 0.36%, and United Microelectronics Corporation fell by 0.72%. Hon Hai Precision was down 0.82%, while Largan Precision had a notable increase of 5.97%. Other companies such as Catcher Technology rose by 0.77%, MediaTek by 1.74%, and Delta Electronics by 0.60%. Conversely, Novatek Microelectronics fell by 1.01%, Formosa Plastics by 1.72%, and Nan Ya Plastics by 1.05%. Asia Cement went down by 0.63%, with Cathay Financial, Fubon Financial, E Sun Financial, and Taiwan Semiconductor Manufacturing Company remaining stable.
The outlook from Wall Street is grim, as major indices opened notably lower on Friday and maintained those losses throughout the trading session. The Dow Jones Industrial Average dropped 696.75 points, or 1.63%, to settle at 41,938.45. The NASDAQ fell by 317.27 points, or 1.63%, closing at 19,161.63, and the S&P 500 decreased by 91.21 points, or 1.54%, ending at 5,827.04.
The decline on Wall Street stemmed from strong non-farm payroll data, which has sparked concerns about potential decisions by the Federal Reserve to maintain interest rates or slow the rate of reductions. While the job report underscores a resilient labor market, it is likely to bolster the Federal Reserve's strategy for gradually reducing interest rates over the upcoming year.
In other markets, oil prices surged significantly on Friday. This increase followed the Biden Administration's imposition of additional sanctions on Russia's oil exports. February futures for West Texas Intermediate Crude oil closed higher by $2.65, or 3.6%, at $76.57 a barrel - marking the highest settlement in three months.
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