Taiwan stock market drops 0.46% as analysts predict Monday losses

The Taiwan stock market ended its four-day winning streak on Friday, losing 210.47 points, or 0.46%, to close at 45,811.01. This decline follows a remarkable surge during which the market had gained nearly 1,800 points, or 4%. Analysts predict that losses may deepen on Monday amid a weak global economic outlook.

The downturn coincides with rising oil prices and profit-taking across Asian markets. Global investor sentiment has soured after a mixed performance in European markets and a downturn in U.S. stock indices. In the U.S., the Dow Jones Industrial Average dropped 107.59 points, or 0.20%, while the NASDAQ and S&P 500 also saw declines. The pullback follows a period of growth that had pushed the S&P 500 to a record intraday high above 7,800, while the NASDAQ reached its highest closing level in over two months.

Sector performance in Taiwan reflected a mixed bag, with technology and airline companies facing the brunt of the losses. However, gains in the financial sector provided some support. The Taiwan Stock Exchange traded in a narrow range between 45,798.31 and 46,402.60 throughout the day, indicating volatility as investors reacted to global cues.

Looking ahead, the Taiwan market may struggle to regain momentum as external pressures persist. The combination of rising oil prices—exacerbated by tensions between the U.S. and Iran—and disappointing economic indicators from the U.S., such as a significant drop in consumer sentiment and retail sales, could weigh heavily on investor confidence. As traders navigate these challenges, the outlook for the Taiwan stock market remains uncertain.