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Higher Open Expected For Taiwan Stock Market

The Taiwan stock market rebounded on Thursday one session after it had ended the two-day winning streak in which it had gathered almost 150 points or 1.4 percent. The Taiwan Stock Exchange now rests just beneath the 10,740-point plateau and it figures to open higher again on Friday.

The global forecast for the Asian markets is upbeat thanks to easing concerns over a global trade war. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The TSE finished modestly higher on Thursday as gains from the financials and steel companies were offset by a mixed picture from the technology stocks.

For the day, the index advanced 61.54 points or 0.58 percent to finish at 10,738.38 after trading between 10,643.65 and 10,752.57 on turnover of 131.52 billion Taiwan dollars.

Among the actives, Cathay Financial climbed 1.76 percent, while Fubon Financial collected 0.80 percent, CTBC Financial gained 0.49 percent, Mega Financial advanced 1.13 percent, China Steel picked up 0.42 percent, Taiwan Semiconductor Manufacturing Company added 0.23 percent, AU Optronics plummeted 10.45 percent, Hon Hai Precision shed 0.49 percent, United Microelectronics Corporation soared 3.25 percent, Largan Precision spiked 2.71 percent, Chunghwa Telecom lost 0.45 percent and Formosa Plastic and Innolux were unchanged.

The lead from Wall Street is positive as stocks showed a strong move back to the upside Thursday, more than offsetting the losses in the previous session.

The Dow jumped 224.44 points or 0.91 percent to finish at 24,924.89, while the NASDAQ surged 107.30 points or 1.39 percent to a record closing high of 7,823.92 and the S&P 500 surged 24.27 points or 0.87 percent to 2,798.29.

The rebound was due to optimism about the upcoming earnings season, with several leading financial companies report results on Friday.

Easing trade concerns between the United States and China also contributed to the rally as traders seem optimistic the continued tariff threats will eventually bring the U.S. and China to the table for talks that result in a long-term trade agreement.

In economic news, the Labor Department said consumer prices edged higher in June, as did core CPI. Also, the Labor Department said first-time claims for unemployment benefits fell more than expected in the week ended July 7.

Crude oil futures failed to rally Thursday after the International Energy Agency's warning that the world's oil supply cushion "might be stretched to the limit" due to production losses. Crude was down 5 cents to $70.33 a barrel.

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