TAIEX shares close lower in wake of Fed rate hikeSOUND FUNDAMENTALS: TSMC shares’ earlier gains yesterday were wiped out, but it still closed above its previous day’s level, after rising 0.4 percent to NT$508Staff writer, with CNAThe TAIEX yesterday closed below 16,000 points after eroding earlier gains, as many investors rushed to sell following an initial upturn, dealers said. The TAIEX closed down 160.64 points, or 1 percent, at 15,838.61. “The 75 basis-point rate increase by the Fed had been priced in after the global markets. “Although the rate hike decision removed market uncertainty for now, concerns are growing that higher borrowing costs will hurt the economy, as the Fed is expected to continue its rate hike cycle down the road,” Lu said. Old economy stocks were also affected by a retreat from their earlier gains, with the transportation sector falling 4.8 percent in the wake of a US government initiative to rein in fast-growing ocean cargo shipping rates, dealers said.

Source: Taipei Times June 16, 2022 22:00 UTC