RTTNews - The winning streak ground to a halt after three sessions for the Taiwan stock market, which had collected more than 260 points or 4 percent in that span. The Taiwan Stock Exchange crashed through support at 2,400 points, although investors are hopeful that the market will see a quick turnaround on Tuesday and reclaim that mark.
The global forecast for the Asian markets is fairly positive, with strength expected from the financial and oil sectors in particular - although turnout may be light ahead of some key economic data out of the United States later in this holiday-shortened trading week. The European markets finished sharply higher, while the U.S. bourses also ended firmly in the green - and the Asian markets are tipped also to move solidly higher.
The TSE finished sharply lower on Monday as investors locked in gains from the recent winning streak. Cement and construction shares fell under steady pressure, while the chemical, technology, textile and paper stocks also ended lower. The losses were mitigated somewhat by gains among the financial and food stocks.
For the day, the index shed 72.41 points or 1.12 percent to close at the daily low of 6,391.15 after peaking at 6,522.13 on turnover of 89.98 billion Taiwan dollars. There were 1,450 decliners and 659 gainers, with 136 stocks finishing unchanged.
Among the decliners, TSMC lost 1.84 percent, while PixArt Imaging fell 6.88 percent, MediaTek lost 2.44 percent and Hon Hai Precision shed 2.35 percent.
Wall Street offers a positive lead as stocks were able to move firmly into positive territory in mid-morning trade on Monday, hovering near their highs for most of remainder of the session after a choppy start. The major averages kicked off the week on a strong note, finishing up by notable margins amid a low volume trading session.
The light volume came as some traders remained on the sidelines ahead of the release of key economic figures later in the week. Traders are looking ahead to data on home prices, consumer confidence, manufacturing and employment.
Amid a light day on the economic front, the sentencing of Bernard Madoff for his $65 billion Ponzi scheme drew some attention, with Madoff receiving the maximum sentence of 150 years in prison. Despite arguments from his defense and words from the former financier himself that he was truly sorry, Judge Denny Chin ensured that Madoff would spend the rest of his life in jail.
On the corporate front, Apple (AAPL) confirmed that CEO Steve Jobs is back at work on a part-time basis, returning after a nearly six-month medical leave during which he underwent a liver transplant. Meanwhile, Northrop Grumman (NOC) saw some strength after it received a contract along with Cobham for the supply of an upgraded vehicle intercom system from the U.S. Army. The contract is valued at up to $2.4 billion.
The major indices all closed higher, with the Dow and the S&P 500 finishing near their best levels of the day. The Dow closed up 90.99 points or 1.1 percent at 8,529.38, the NASDAQ closed up 5.84 points or 0.3 percent at 1,844.06, and the S&P rose 8.33 points or 0.9 percent to 927.23.
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