Win Streak Likely To End For Taiwan Stock Market

The Taiwan stock market has moved higher in four straight trading days, advancing more than 215 points or 2.2 percent along the way. The Taiwan Stock Exchange now rests just above the 9,885-point plateau although investors figure to cash in on Friday.

The global forecast for the Asian markets is soft on renewed concerns for the outlook on interest rates – although support from crude oil prices should limit the downside. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The TSE finished barely higher on Thursday following a mixed picture from the technology stocks and weakness from the financial shares.

For the day, the index added 1.05 points or 0.01 percent to finish at 9,885.36 after trading between 9,885.36 and 10,001.85 on turnover of 142.906 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company climbed 1.10 percent, while United Microelectronics Corporation tumbled 2.13 percent, Largan Precision advanced 1.15 percent, Hon Hai Precision retreated 0.96 percent, Catcher Technology added 1.00 percent, AsusTek Computer fell 1.13 percent, Cathay Financial and Fubon Financial both shed 0.51 percent, CTBC Financial dropped 0.97 percent, Mega Financial skidded 1.53 percent, Formosa Plastic lost 0.50 percent, Chunghwa Telecom slid 0.93 percent, Asia Cement lost 1.21 percent and Taiwan Cement and Formosa Chemical were unchanged.

The lead from Wall Street suggests mild consolidation as stocks opened lower on Thursday and bounced back and forth across the unchanged line before finishing in the red.

The Dow shed 27.59 points or 0.11 percent to 25,338.84, while the NASDAQ fell 18.51 points or 0.25 percent to 7,273.08 and the S&P 500 lost 5.99 points or 0.22 percent to end at 2,737.80.

The lower close on Wall Street came after the minutes of this month’s Federal Reserve monetary policy meeting seemed to reinforce expectations for another quarter-point increase in interest rates in December. However, the minutes noted a few participants continued to favor gradual increases but expressed uncertainty about their timing.

The early weakness followed some disappointing economic data, including a National Association of Realtors report that unexpectedly showed a big drop in pending home sales in October.

Also, the Labor Department said initial jobless claims unexpectedly rose to a six-month high in the week ended November 24. And the Commerce Department said personal income and spending both increased by more than expected in October.

Crude oil futures moved higher Thursday on reports Russia will agree on a production cut in the upcoming OPEC and non-OPEC producers meet in Vienna next week. Crude oil futures for January rebounded to end at $51.45 a barrel, gaining $1.16 or 2.3 percent for the session.

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