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Taiwan Stock Market May Test Resistance At 11,000 Points

The Taiwan stock market rebounded on Wednesday, one session after it had snapped the seven-day winning streak in which it had soared almost 450 points or 4 percent. The Taiwan Stock Exchange now rests just shy of the 10,900-point plateau and it's got another green light on Thursday.

The global forecast for the Asian markets suggests mild upside, thanks to a bump in crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The TSE finished slightly higher on Wednesday following gains from the finance and cement sectors, while the steel and technology sectors were mixed.

For the day, the index added 22.84 points or 0.21 percent to finish at 10,897.57 after trading between 10,865.07 and 10,915.74 on turnover of 137.64 billion Taiwan dollars.

Among the actives, Hon Hai Precision skidded 1.63 percent, while Innolux gained 0.43 percent, Largan Precision shed 0.98 percent, United Microelectronics Corporation sank 0.91 percent, Taiwan Semiconductor Manufacturing Corporation was unchanged, China Steel added 0.64 percent, Taiwan Steel Union lost 0.87 percent, Taiwan Cement surged 5.52 percent, Cathay Financial climbed 1.67 percent, Mega Financial collected 0.57 percent and Fubon Financial jumped 1.95 percent.

The lead from Wall Street is positive as stocks fluctuated on Wednesday but finished mostly higher - offsetting somewhat the sharp pullback in the previous session.

The Dow rose 62.52 points or 0.25 percent to 24,768.93, the NASDAQ advanced 46.67 points or 0.63 percent to 7,398.30 and the S&P 500 climbed 11.01 points or 0.41 percent to 2,722.46.

Buying interest was subdued, with geopolitical uncertainty keeping some traders on the sidelines after North Korea threatened to cancel an historic meeting between leader Kim Jong Un and President Donald Trump.

In economic news, the Commerce Department reported a sharp pullback in new residential construction in April, while building permits also tumbled. Also, the Federal Reserve said industrial production increased more than expected in April.

Crude oil futures nudged higher Wednesday amid a large decrease in U.S. oil stockpiles. June WTI oil inch up by 18 cents, or nearly 0.3 percent, to settle at $71.49/bbl.

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