The Taiwan stock market has moved higher now in four straight trading days, climbing more than 215 points or 3 percent along the way. The Taiwan Stock Exchange finished just above the 7,430-point plateau, although now traders figure to lock in gains when the market opens on Friday.
The global forecast for the Asian markets is mixed and flat, with profit taking likely on the menu after the regional bourses rallied on Thursday following the release of Chinese economic data that was generally in line with expectations. Some positive economic data from the U.S. may provide mild support. The European and U.S. markets were mixed but little changed and the Asian bourses are tipped to follow suit.
The TSE finished sharply higher on Thursday following gains from the technology, finance, construction, cement, paper, textile, plastic and food sectors.
For the day, the index surged 113.90 points or 1.55 percent to finish at 7,433.70 after trading between 7,341.87 and 7,435.00 on turnover of 107.77 billion Taiwan dollars.
Among the gainers, Largan Precision spiked 4.82 percent, while Genius Electronic Optical jumped 4.12 percent, Cheng Uei Precision climbed 3.99 percent, Fubon Financial surged 4.41 percent and Yuanta Financial collected 2.49 percent.
The lead from Wall Street provides little clarity as stocks turned in another lackluster performance on Thursday, with traders reluctant to make any significant moves. The major averages remained stuck near the unchanged line throughout the session after ending the previous session nearly flat.
The choppy trading came as traders expressed continued uncertainty about the near-term outlook for the markets following recent strength. While optimism about further monetary stimulus helped to drive stocks higher in recent weeks, traders seem reluctant to continue buying without any official announcement.
Some upbeat economic data helped to keep traders from cashing in on the recent gains, as the Labor Department reported an unexpected drop in weekly jobless claims - which fell to 361,000 in the week ended August 4 from the previous week's revised figure of 367,000. Economists had expected jobless claims to edge up to 367,000 from the 365,000 originally reported for the previous week.
Also, the Commerce Department reported that the U.S. trade deficit narrowed to $42.9 billion in June from $48.0 billion in May. The trade deficit had been expected to narrow to $47.5 billion. The narrower than expected trade deficit reflected an increase in the value of exports and a decrease in the value of imports.
Among individual stocks, shares of Allscripts Healthcare showed a strong upward move after the healthcare information services provider raised its full year earnings guidance. Online broker E*Trade also turned in a strong performance on news that CEO Steven Freiberg has left the company. Meanwhile, shares of SunPower came under pressure after the solar products and services company provided disappointing guidance.
The major averages eventually ended the session mixed, with the Dow edging down 10.45 points or 0.1 percent to finish at 13,165.19, while the NASDAQ rose 7.39 points or 0.3 percent to end at 3,018.64 and the S&P 500 crept up 0.58 points or less than a tenth of a percent to 1,402.80.
by RTT Staff Writer
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