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Renewed Support Tipped For Taiwan Stock Market

The Taiwan stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had jumped more than 150 points or 1.3 percent. The Taiwan Stock Exchange now rests just above the 10,950-point plateau although it's expected to reverse gears and open higher again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic as easing geopolitical concerns were offset by sliding oil prices. The European markets were mixed and the U.S. bourses were higher, and the Asian markets figure to split the difference.

The TSE finished slightly lower on Monday following weakness from the steel companies and mixed performances from the financials and technology shares.

For the day, the index eased 10.84 points or 0.10 percent to finish at 10,954.55 after trading between 10,921.17 and 10,974.94 on turnover of 124.29 billion Taiwan dollars.

Among the actives, Taiwan Semiconductor Manufacturing Company shed 0.41 percent, while Largan Precision spiked 2.60 percent, Innolux plummeted 4.38 percent, AU Optronics tumbled 1.87 percent, United Microelectronics dipped 0.32 percent, Hon Hai Precision added 0.69 percent, Fubon Financial skidded 1.17 percent, Cathay Financial lost 0.57 percent, E. Sun Financial collected 0.50 percent, Mega Financial gained 0.20 percent, Taiwan Steel Union dropped 1.99 percent and China Steel was unchanged.

The lead from Wall Street is positive as stocks moved higher on Monday, reacting to positive earnings and economic news while extending last week's gains.

The Dow added 212.90 points or 0.87 percent to 24,573.04, while the NASDAQ gained 49.63 points or 0.70 percent to 7,156.28 and the S&P climbed 21.54 points or 0.81 percent to 2,677.84.

The strength reflected a positive reaction to earnings news from financial giant Bank of America (BAC), which beat Q1 forecasts.

In economic news, the Commerce Department noted stronger than expected retail sales growth in March. Also, the National Association of Home Builders saw a modest drop in homebuilder confidence in April.

Stocks remained positive in the afternoon after President Donald Trump said he intends to nominate Richard Clarida as Federal Reserve Vice Chairman.

Crude oil prices fell Monday after data showed the shale sector is expected to rise by 125,000 barrels a day in May. June WTI oil settled at $66.22/bbl on Nymex, down $1.17 or 1.7 percent. Prices tumbled from last week's three-year peak.

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